Broad correlation of export transport records can satisfy refund conditions for bulk cargo service tax claims.

In refund claims for service tax paid on export-related transport services for bulk cargo, compliance with the refund notification may be shown through broad correlation of transport evidence, tax payment and exported quantity. Strict one-to-one matching of each lorry receipt with export invoice details was not treated as indispensable where the cargo was aggregated at port and the export nexus was otherwise established. Refund could not be denied solely for omission of invoice details on transport documents, and the rejection of the claim was held unsustainable.

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Issues: Whether refund of service tax paid on services used in export of bulk cargo could be denied for non-mention of exporter's invoice details on lorry receipts, or whether compliance with the refund notification could be accepted on a broad correlation of transport evidence, service tax paid and quantity exported.

Analysis: The dispute concerned refund claims under the export service tax refund notification regime. The goods were bulk cargo in the nature of iron ore fines, which had to be aggregated at the port before shipping documents and export invoices were prepared. In that factual setting, strict one-to-one correlation between each transport document and the export invoice was not treated as indispensable. The earlier tribunal view, along with the departmental circular on simplified verification and broad correlation, supported the principle that refund should not be denied merely for procedural omission when the export, transport and tax payment nexus is otherwise established.

Conclusion: The condition in the refund notification was held to be satisfied by broad correlation, and the denial of refund was not sustainable. The refund claim was therefore admissible to the assessee.

Final Conclusion: The export refund claim was upheld on the basis that bulk cargo exports permit practical correlation of transport and tax documents with the exported quantity, and the impugned rejection orders were set aside.

Ratio Decidendi: In refund claims for service tax paid on export-related services involving bulk cargo, compliance with documentary conditions may be established by broad correlation of transport evidence, tax payment and exported quantity, and refund cannot be denied solely for absence of strict invoice details on lorry receipts where the export nexus is otherwise shown.

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