Export refund on GTA services allowed on broad co-relation and certification despite missing invoice details in transport records

Refund of service tax paid on GTA services used for export cannot be denied merely because lorry receipts do not mention the exporter's invoice particulars where one-to-one correlation is impracticable in bulk exports. The Tribunal accepted that broad co-relation between the transport service and the exports, supported by self-certification or Chartered Accountant certification, satisfies the export refund requirement. Relying on the Board's clarification and a liberal approach in export refund matters, it held that the absence of invoice references in transport documents did not justify rejection of the claim.

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Issues: Whether refund of service tax paid on GTA services used for export could be denied for want of invoice particulars in the lorry receipts, and whether broad co-relation supported by certification was sufficient for grant of refund under the export refund notification.

Analysis: The refund claim arose under the export refund scheme for specified services used in connection with export of goods. The condition relied upon by the department required particulars of the exporter's invoice to be mentioned in the transport documents, but the record showed practical difficulty in one-to-one correlation in bulk export of iron ore fines. The Circular issued by the Board recognized such difficulties and clarified that only broad co-relation of input services with exports was required, and that self-certification or Chartered Accountant certification could be accepted. The Tribunal also followed its earlier view that, in such export refund matters, a liberal approach is warranted where the fact of export and the nexus with transport services are otherwise established.

Conclusion: The refund could not be rejected merely for absence of invoice reference in the lorry receipts, and broad co-relation supported by certification was sufficient. The denial of refund was unsustainable.

Final Conclusion: The refund claim was held admissible and the assessee obtained consequential relief.

Ratio Decidendi: In export refund claims for specified services, where strict one-to-one documentary correlation is impracticable, the prescribed condition may be satisfied by broad co-relation of the services with the export, supported by proper certification.

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