2025 (6) TMI 531 - AT - Service Tax

Export Services Refund Claim Succeeds: Tribunal Validates Procedural Compliance and Full Tax Relief Under Notification No.17/2009-ST

M/s. Universal Textile Mills Versus Commissioner of Service Tax, Bangalore

CESTAT Bangalore addressed a service tax refund claim for export-related services. The Tribunal found no restrictive conditions in Notification ... Refund of service tax paid towards services received for export of finished goods - Compliance with the conditions of refund claim under N/N.17/2009-ST dated 07.07.2009 or not - HELD THAT:- On scrutiny of the refund application, it is evident that the appellant had furnished the entire details as required for processing the refund claim and adjudicating authority had rightly held that the appellant is eligible for the refund and partially allowed the refund claim. In the absence of any condition in the Notification No.17/2009-ST dated 07.07.2009, claim cannot be rejected as done by the appellate authority. Considering the above, the impugned order is set aside and the appeal is allowed with consequential relief, if any in accordance with law. The Appellate Tribunal (CESTAT Bangalore) addressed whether the appellant complied with the conditions of Notification No.17/2009-ST dated 07.07.2009 in claiming a refund of service tax paid on services related to export of finished goods. The appellant, engaged in manufacturing and exporting natural silk fabrics, submitted a refund claim with requisite details including service provider information, service tax registration, invoices, and payment evidence. The adjudicating authority partially allowed the refund, but the appellate authority set aside this order, holding that the appellant had not satisfied the Notification's conditions.On appeal, the Tribunal examined Notification No.17/2009-ST and found no conditions restricting refund claims for inspection and certification agency services or other services like Custom House Agent, Courier, and Clearing and Forwarding services. The Tribunal emphasized that the appellant had complied with all procedural requirements and that the adjudicating authority's partial allowance was justified. The appellate authority's rejection was therefore 'unsustainable.' Citing the precedent in M/s. Star Silk Export Pvt. Ltd. Vs. CCCE, the Tribunal held that in the absence of any specific conditions in the Notification, the refund claim cannot be denied.Accordingly, the Tribunal set aside the impugned appellate order and allowed the appeal, granting consequential relief in accordance with law.