Refund of service tax on GTA transport for frozen meat is governed by the foodstuff exemption and not denied by export rebate rules.

Transportation of foodstuffs by a goods transport agent was covered by Notification No. 25/2012-ST, as amended by Notification No. 3/2013-ST, and frozen meat was treated as foodstuff for this purpose. Refund of service tax paid under reverse charge on GTA services therefore had to be tested against that exemption notification, and the fact that the goods were exported under claim of rebate did not, by itself, defeat the refund. Notification No. 41/2012-ST was inapplicable because the service was not one of the specified services covered by that notification, and the exemption under Notification No. 25/2012-ST operated independently.

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Issues: Whether refund of service tax paid on Goods Transport Agency services used for transportation of frozen meat was admissible under Notification No. 25/2012-ST despite the goods having been exported under claim of rebate and the department's reliance on Notification No. 41/2012-ST.

Analysis: The service of transportation of foodstuffs by a goods transport agent was covered by Notification No. 25/2012-ST as amended by Notification No. 3/2013-ST, and frozen meat was treated as foodstuff for this purpose. The refund claim had to be examined with reference to the language of that exemption notification. Notification No. 41/2012-ST was not applicable to deny the claim, as the service in question was not one of the specified services covered by that notification and the exemption under Notification No. 25/2012-ST operated independently.

Conclusion: The assessee was entitled to refund of the service tax paid under reverse charge on the Goods Transport Agency services, and the denial of refund was unsustainable.

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