Recipient-side service classification cannot defeat export refund where services are used for exports and the issue is settled.

Refund under Notification No. 52/2011-ST for export-related services could not be denied where the services were undisputedly used for export of goods and the only objection was their classification at the recipient's end. The Tribunal applied the settled principle that revenue cannot challenge the recipient's service classification to refuse refund, and followed its earlier decision in the assessee's own case on the same issue. The matter was treated as no longer res integra, and the refund claim was held admissible.

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Issues: Whether refund under Notification No. 52/2011-ST could be denied in respect of export-related services on the ground that the services were not correctly classified at the recipient's end.

Analysis: It was found that there was no dispute regarding the use of the services for export of goods. The only objection was to the classification of the services. The ruling applied the settled principle that classification of services at the recipient's end cannot be challenged by the revenue for denying refund, and relied on the Tribunal's earlier decision in the assessee's own case on the same issue. The matter was therefore treated as no longer res integra.

Conclusion: The refund claim was held to be admissible and the denial of refund was unsustainable.

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