Service tax refund on export-linked services remanded for fresh document verification and reconsideration

Refund claims for service tax paid on services used in or in relation to export of goods were sent back for fresh verification because the export linkage and service use had not been properly substantiated before the lower authorities. New documents were produced for the first time before CESTAT, and those materials had not been examined earlier. As the Revenue raised no objection to remand and the documents required scrutiny, the Tribunal directed the adjudicating authority to re-examine the claims and decide them after granting the assessee an opportunity of hearing.

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Issues: Whether the refund claims for service tax paid on services used in or in relation to export of goods should be remanded for fresh verification of documents.

Analysis: The refund claims had been rejected because the assessee could not substantiate the export linkage and the use of the services in export before the lower authorities. Fresh documents, including material produced for the first time before the Tribunal, were placed for verification and had not been examined earlier. Since the Revenue had no objection to remand and the documents required scrutiny, fresh consideration by the adjudicating authority was warranted in the interests of justice.

Conclusion: The matter was remanded to the adjudicating authority for fresh verification and decision after granting an opportunity of hearing to the assessee.

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