Tribunal Grants Appeal, Approves Service Tax Refund for Courier Services in Silk Goods Export Under Notification No. 17/2009-S.T.

The Tribunal overturned the previous orders and granted the appellant's appeal, allowing a refund of Service Tax paid for courier services used in exporting silk goods under Notification No. 17/2009-S.T. The Tribunal determined that the Service Tax payment was valid, as the Department had accepted the classification of the services as 'courier services' for export purposes, thereby qualifying for the refund.

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Issues involved:
The appeal against the rejection of a refund claim of Service Tax for courier services used in the export of silk goods under Notification No. 17/2009-S.T.

Summary:
The appellant filed a refund claim for Service Tax amounting to Rs.98,782/- for services of a courier agency used for exporting silk goods. The adjudicating authority rejected the refund, stating the goods were not 'time sensitive' and the service did not qualify as 'courier service.' The appellate authority upheld this decision. The appellant argued that the Department had accepted the Service Tax payment under the category of 'Courier Service' and should not question the classification now. The Revenue's Authorized Representative supported the impugned order.

The Tribunal noted that the appellant paid Service Tax for courier services used in exporting silk goods, which the Department had accepted. Since the goods were exported using courier services, the Service Tax payment under this category was valid. Referring to precedents, the Tribunal emphasized that courier services for export qualify for refund under Notification No. 17/2009-S.T. As the payment and utilization of services for export were undisputed, the Tribunal held the appellant eligible for the refund.

Accordingly, the Tribunal set aside the impugned order rejecting the refund claim and allowed the appeal, granting the appellant the refund of Service Tax paid for courier services used in exporting silk goods under Notification No. 17/2009-S.T.

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