Export-linked courier service tax refund allowed where service payment was accepted and goods were exported through courier agency

Refund of service tax paid on courier services used for export of goods was held admissible under Notification No. 17/2009-S.T. where the tax payment was undisputed and the service was established as export-linked. Once the Department had accepted the payment under the courier agency category and the goods were shown to have been exported through the courier service, refund could not be denied merely because the service was said to be incorrectly classified as courier agency service. The assessee was therefore entitled to refund relief under the notification.

---

---

Issues: Whether refund of service tax paid on courier services used for export of goods was admissible under Notification No. 17/2009-S.T. dated 07.07.2009.

Analysis: The refund claim related to courier services utilised for exporting silk goods. The tax payment on the courier service was not in dispute, and the goods had been moved outside India through a courier agency. The notification granted refund of service tax in respect of input services used in connection with export of goods. Once the Department had accepted the service tax payment under the courier agency category and the export-linked use of the service was established, refund could not be denied on the ground that the service was not correctly classifiable as courier agency service.

Conclusion: The refund was admissible and the assessee was entitled to relief under Notification No. 17/2009-S.T. dated 07.07.2009.

---