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.

[Guest]

Following conditions are required to be satisfied: (a) the exemption shall be claimed by the exporter of the goods for the specified services received and used by the exporter for export of the said goods; (b) the exemption claimed by the exporter shall be provided by way of refund of service tax paid on the specified services used for export of the said goods; (c) the exporter claiming the exemption has actually paid the service tax on the specified services; (d) no CENVAT credit of service tax paid on the specified services used for export of said goods has been taken under the CENVAT Credit Rules, 2004; (e) the said goods have been exported without availing drawback of service tax paid on the specified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995; (f) exemption or refund of service tax paid on the specified services used for export of said goods shall not be claimed except under this notification. There is no condition that exporter should not avail DEPB. Hence, rejection of claim by department is wrong.

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.