Export service tax refund allowed for repo, haulage and terminal handling charges despite service classification on invoices.

Service tax paid on repo charges, haulage charges and terminal handling charges used for export of goods was held refundable under Notification No. 41/2007, as amended. The services had already been treated in the assessee's own earlier case as covered by the notification, and that binding view was followed. Classification of the invoices by the service provider under Business Auxiliary Service did not defeat the refund claim because the decisive factor was the nature of the export-related services actually rendered. The refund claim was therefore admissible and the Revenue's challenge failed.

---

---

Issues: Whether service tax paid on repo charges, haulage charges and terminal handling charges used in export of goods was refundable under Notification No. 41/2007 dated 06.10.2007 as amended.

Analysis: The same services had already been considered in the assessee's own case for an earlier period, where the High Court held that such services fell within the scope of the notification. The invoices showed that although the service provider classified the services under Business Auxiliary Service, the nature of the services actually rendered was repo charges, terminal handling charges and similar export-related charges, which were covered by the earlier binding decision. The fact that the service provider paid tax under a particular category did not defeat the refund claim where the services used for export were otherwise covered by the notification.

Conclusion: The service tax paid on the said services, being used for export of goods, was eligible for refund under Notification No. 41/2007 dated 06.10.2007 as amended, in favour of the assessee.

Final Conclusion: The refund claim was held admissible on the basis that the export-related services fell within the notification, and the Revenue's challenge failed.

---