REBATE CLAIM

[pradip patwardhan]

Dear Experts

We are as an Exporter regularly file service tax rebate claim under notification 41/2012-ST in resect of service tax paid on input service of Business support service and clearing and forwarding service. We have been regularly receiving the rebate claim since last 3 years but now the department new officer is of the view that the amount of service tax paid to our service provider has been recovered by us from importer (our buyer) as it is subsequently included in the invoice value and hence Show cause notice issued by the dept.and asked to why the claim amount should not be rejected.

Kindly post your valuable reply on above matter urgently....

Thanks & regards,

Pradip Patwardhan

Maharashtra

AI Summary

Export rebate on input services limited; entitlement depends on use beyond place of removal and Cenvat credit treatment.
Dispute over Notification 41/2012 ST rebate: department alleges input service tax was recovered via invoice inclusion; experts reply that only services, not service tax, are exported, and Cenvat credit of input service tax cannot form part of the exported service's transaction value. Services used up to the place of removal should be taken as input credit, while services used beyond that point may be eligible for rebate; alternate approach is claiming fixed percentage rebate under the notification.