Refund of Service Tax to exporters

[Guest]

Notification 40 & 41 - Refund of Service Tax to exporters. There is provision for refund of Service tax on testinf Charges covered under section 65(105) (zzh), in notification term testing of such goods is used now my query is if I export Garments then only service tax on Garment testing will qualify or testing of Fabric used for making such garment will also qualify assuming other conditions are met. Regards

AI Summary

Service Tax Refund on Testing Charges: Clarification on Eligibility for Garment and Fabric Testing Under Rule 5 Cenvat Credit Rules 2004. An individual inquired about the eligibility for a service tax refund on testing charges under Notifications 40 and 41, specifically questioning whether the refund applies solely to garment testing or also includes fabric testing used in garment production. The response clarified that only post-removal services are considered for this refund. If the exporter is not claiming a duty drawback, they might be eligible to avail credit and subsequently receive a refund under Rule 5 of the Cenvat Credit Rules 2004.