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of <h1>Tribunal Grants Service Tax Refund for Export, Criticizes Denial on Flimsy Grounds</h1> <h3>M/s Sethia Oils Ltd. Versus Commissioner of CGST & Excise, Kolkata North</h3> M/s Sethia Oils Ltd. Versus Commissioner of CGST & Excise, Kolkata North - TMI Issues:Refund of service tax for export of goods under specific shipping bills; Interpretation of Notification No. 41/2012-ST regarding registration with Export Promotion Council; Review of order by Commissioner of Service Tax; Appeal before First Appellate Authority; Conditions for refund eligibility; Dispute over registration with Export Promotion Council; Validity of membership with Trade Promotion Organization; Justification of impugned order by Revenue; Detailed analysis of appeal records; Disagreement with Commissioner (Appeals) decision; Denial of substantive benefit to assessee; Government's intention behind rebate schemes; Promotion of Indian exporters; Competitiveness in global market; Rejection of refund claims on flimsy grounds; Judicial intervention to ensure fair treatment of exporters.Detailed Analysis:The case involves a dispute over the refund of service tax paid on input services utilized for exporting goods under specific shipping bills. The initial refund was sanctioned by the Deputy Commissioner but was later reviewed by the Commissioner of Service Tax, who found the appellant ineligible due to non-registration with the Export Promotion Council as required by Notification No. 41/2012-ST. The appeal before the First Appellate Authority resulted in the Commissioner (Appeals) allowing the Department's appeal based on the registration requirement with the Export Promotion Council.The Authorized Representative for the Appellant argued that the principal condition in the Notification was not registration with the Export Promotion Council and highlighted their membership with a Trade Promotion Organization recognized by the Government of India. They also mentioned additional memberships taken as protective measures and referred to relevant trade policy provisions supporting their eligibility for the refund.On the other hand, the Revenue justified the impugned order, emphasizing the mandatory nature of registration with the Export Promotion Council for refund eligibility. The Tribunal, after hearing both sides and examining the appeal records, noted the detailed order by the Deputy Commissioner and the Commissioner (Appeals)' decision based on the registration issue. The Tribunal disagreed with the Commissioner (Appeals) and emphasized that if the conditions for refund under the Notification were met, the substantive benefit should not be denied to the assessee.The Tribunal highlighted the government's intention behind rebate schemes to promote Indian exporters and ensure competitiveness in the global market. It criticized the rejection of refund claims on flimsy grounds, stating that such actions defeat the purpose of rebate schemes and subject exporters to unnecessary litigations. Ultimately, the Tribunal set aside the impugned order, allowing the appeal with consequential benefits for the appellant. The judgment aimed to ensure fair treatment of exporters and uphold the objectives of rebate schemes in promoting Indian exports.
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