Since the introduction refund of service tax on certain services, used for export of goods where merchant exporter is not able to avail cenvat credit, vide notification no. 41/2007 service tax, dated 6-10-2007, the exporter as well as the department were under confusion about jurisdiction for filing and processing of refund claim.

Now, understanding the difficulties being faced by the exporter, CBEC has issued guidelines for determining the jurisdiction with which the exporter can file the claim for refund of service tax.

See circular no. 101/4/2008 ST dated 12-3-2008

Refund jurisdiction for service tax on exported goods clarified, enabling exporters to know where to file refund claims. Refund of service tax on services used in the export of goods applies where a merchant exporter cannot avail cenvat credit. Uncertainty existed about the proper jurisdiction for filing and processing such refund claims. Administrative guidelines were issued to clarify the competent jurisdiction for filing and the mechanism for processing refund claims under the refund notification, aiming to remove confusion and facilitate claim submission and adjudication by designated offices.