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Tribunal grants appeal for service tax rebate on export services, highlights liberal interpretation The Tribunal allowed the appellant's appeal, emphasizing the liberal interpretation of the Notification to facilitate rebate claims for service tax paid ...
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Tribunal grants appeal for service tax rebate on export services, highlights liberal interpretation
The Tribunal allowed the appellant's appeal, emphasizing the liberal interpretation of the Notification to facilitate rebate claims for service tax paid on specified services used for export of goods. The Tribunal set aside the impugned order except for the amount of Rs. 28,575/- already allowed by the Commissioner (Appeals).
Issues: Claim for rebate of service tax under Notification No.41/2012-ST dated 29.06.2012 for export of goods.
Analysis: The appellant, engaged in trading of minerals, metals, and energy products, availed taxable services for export and claimed a rebate of service tax amounting to Rs. 2,83,731/- for services used during export. A Show Cause Notice challenged a portion of the claim, leading to the Adjudicating Authority sanctioning Rs. 2,61,867/- and rejecting Rs. 21,864. The first appellate authority modified the sanctioned amount to Rs. 28,575/- and directed the appellant to pay the differential amount of Rs. 2,33,292/- with interest. The Tribunal heard the appeal against this order.
The appellant's consultant argued that the Notification No. 41/2012-ST should be interpreted liberally to promote exports by exempting service tax on services used during exports. The Department reiterated the lower authority's orders. The Tribunal noted that similar cases had been addressed in previous decisions, citing a specific case where the Tribunal upheld the Commissioner's decision that rebate claims need not be determined shipping bill wise. The Tribunal analyzed the relevant paragraphs of the Notification to clarify the procedure for claiming rebates and highlighted that claims could cover multiple shipping bills without the need for individual claims per bill.
The Tribunal found that the Commissioner (Appeals) had thoroughly addressed all issues and followed Tribunal decisions. Rejecting the Revenue's appeals based on the Commissioner (Appeals) order, the Tribunal allowed the appellant's appeal, setting aside the impugned order except for the Rs. 28,575/- already allowed by the Commissioner (Appeals).
In conclusion, the Tribunal allowed the appellant's appeal, emphasizing the liberal interpretation of the Notification to facilitate rebate claims for service tax paid on specified services used for export of goods. The Tribunal's decision was pronounced in open court on 24.08.2018.
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