Refund under notification No.41/2007

[ranganath shenoy]

The Notifn. No. 41/2007-ST dated 06-10-2007 as amended at Sl. No.15 of the Schedule ,exempts the services provided by commission agents located outside india and engaged under a contract or agreement or any other docueedment by the exporter in india to act on behalf of the exporter to cause sale of goods exported by him under certain conditions.Now,the refund of service tax is not granted for the reason that exporter have claimed DEPB.

AI Summary

Service Tax Refund Denial Incorrect for Exporter Claiming DEPB under Notification No. 41/2007-ST; No Prohibition on DEPB. A query was raised regarding the denial of a service tax refund under Notification No. 41/2007-ST, which exempts services by commission agents outside India for exporters. The refund was denied because the exporter claimed DEPB. In response, it was clarified that the conditions for exemption include the exporter claiming the refund for service tax paid on specified services used for export, without taking CENVAT credit or availing service tax drawback. There is no condition prohibiting the availing of DEPB, making the department's rejection of the claim incorrect.