service tax refund under Notification No. 17/2009 ST - CHA

[Rishabh Gugale]

we have filed the service tax refund claim with central excise authority as per Service Tax  Notification No. 17/2009 related to the export of goods and services rendered by the Customs House Agent.  The Customs House Agent has charged service tax on services related to physical export of goods which includes the Agency Charges.  We have filed the original service tax bill of the CHA indicating the amount of service tax and payment thereof. All condiitions and procedures has been correctly fulfilled while submission of the claim.

Below expenses incurred while clearance of the export container from Factory till loading on the ship / vessel.  For example :-

Terminal Handling Charges

customs Formalities

Loading and unloading charges,

CMC Charges,

Transportation of container on truck carrier from factory to Sea Port.

Forklift charges

Etc., Etc.

The customs house agent has charges above charges and levied service tax whcih has been paid by us.  Since the cenvat credit is not availed the refund has been filed.  The central excise authority has denied the claim on the grounds that the CHA bill is not supported with actula expenses incurred on above charges and sanctioned the claim only with respect to agency charges.

Can anybody share views on above and whether such denial is correct when all expenses can not be supported with BILL as these are in relation to export goods.  Any case law if available will be useful to file the appeal against the order.

Rishabh.

[YAGAY andSUN]

Please check the following para of the Notification No. 17/2009-ST:-

15. (j) Service provided by a clearing and forwarding agent in relation to export goods exported by the exporter.

Exporter shall produce,-

(i) invoice issued by clearing and forwarding agent for providing services specified in column (3) specifying,-

(a) number and date of shipping bill;

(b) description of export goods;

(c) number and date of the invoice issued by the exporter relating to export goods;

(d) details of all the charges, whether or not reimbursable, collected by the clearing and forwarding agent from the exporter in relation to export goods;

(ii) details of other taxable services provided by the said clearing and forwarding agent and received by the exporter, whether or not relatable to export goodsf

Further, on Transportation of goods in container on truck carrier from factory to Sea Port, you should avail the exemption under Notification No. 31/2012-ST.  No need to pay the service tax on such activities.

AI Summary

Service tax refund claims require CHA invoices detailing shipping bills and charges; unsupported expense items may be disallowed. Service tax refund claims for CHA-billed export services require the exporter to produce CHA invoices specifying shipping bill number and date, description of exported goods, the exporter's invoice number and date, and details of all charges collected by the CHA; absent such documentary support authorities may restrict refunds to clearly supported agency charges. Inland container transportation to seaport may be subject to a separate exemption and need not attract service tax where that exemption applies.