TaxTMI 
TaxTMI 
2017 (9) TMI 1436
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....But, the rejection of refund claim of GTA service was upheld. Revenue's Appeal Nos.ST/41, 42, 198, 199, & 204/10 The Revenue filed these appeals against the impugned orders. 2. Heard both sides and perused the appeal records. 3. The main contention of the Id. AR on behalf of the Revenue is that there is no linkage like shipping bill No., bill of lading No., export invoice No., etc. to show that the services are actually used for the goods claimed to have been exported under the specific shipping Bill. It is also contended that Notification No.41/2007-ST dated 06.10.2007 clearly stipulates that refund of Service Tax can only be allowed when the goods are used for export goods and a proper officer (Asstt.Commr./Deputy Commr.) of Central Excise shall satisfy himself that the said services have been indeed used for export. For proper appreciation of the case, the finding of the Commissioner(Appeals) in Order-in-Appeal Nou43-44/ST/BBSR-II/2009 dated 25.11.2009 is reproduced below:- "I have carefully gone through the case record. The issue being similar in both the cases, I proceed to dispose both the appeals in a common order. In respect of elements like term....
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....he service is general in nature and not relatable to any specific export. However, as per the order of the lower authority, this service has been rendered as per the agreement between the appellant-exporter and the buyer of the goods for such testing and analysis of the goods to determine the quality of the goods at the port of loading. It is also beyond doubt that the service is specific to the goods lying inside the port area and meant for export. As such the service is utilized on the goods for the purpose of export only and hence there should not be any reason to deny the claim of refund in this regard." 4. The Id. CounseI for the respondent contended that iron ore fines extracted from the mines are transported through trucks/lorry and also by way of railway wagon and are stacked at the port side. When the Iron Ore fines are stacked at the port side, the exporter has to incur various charges like loading/ unloading, stacking, wharfage, license fee for bare land, terminal charges, haulage charges, technical testing and analysis charges etc. and pay the service tax due thereon. incurred the said charges and paid the service tax due thereon. When the vessel is available, the do....
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....cting claim in respect of 'GTA Service'. First appellate authority has held that co-relation of Service Tax paid by the service providers is not established by the appellant as required under Notification No.41/2007-ST dated 06.10.2007 with respect to 'GTA Services' and 'Port Services'. The relevant paras of the Order-in-Appeal are reproduced below :- "7. As regards to the rejection of refund claim in respect of GTA service it is seen that the order rejects the refund of Service Tax on services received vide bill No.E-17 to E-20 of M/s G.T. Ram Rao prior to 19.02.2008. In addition to this ground the order also rejects the entire claim on GTA service on the following two grounds: A. Goods were not transported from the place of removal to the inland container depot or to the port of export. B. Details of exporter's invoice is not mentioned in the invoices basing on which claim is lodged A co relation between services provided and the goods exported is missing. 8. It may be mentioned here that vide Notification No.3/2008-S.T dated. 19.02.2008, the benefit of refund of Service Tax has been extended to the GTA service provided to an exporter i....
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....h regard to loading of cargo into specific vessel and referred to a summery and stated that Service Tax paid on GTA service has a co relation to the loading of goods in to a specific vessel. But the appellant has no contention against the grounds of rejection which requires that details of exporter's invoice are to be available in the lorry receipts or in the invoices basing on which claim is filed. It is seen that Notification No.41/2007-ST as amended, in respect of GTA Service, specifically stipulated in condition (iii) as follows: "(iii) details of exporter's invoice relating to export goods are specifically mentioned in the lorry receipt and the corresponding shipping bill." 11. As it is a condition imposed in the Notification, and Notification does not empower any relaxation from the condition, the noncompliance cannot be condoned and as such the rejection of the claim on this ground cannot be faulted." 9. The Id. Advocate appearing on behalf of the appellants submitted that the export of goods or services do not suffer the incidence of any duties or taxes, as the policy of the Government is not to export domestic taxes or duties and also to avoid the ca....
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....ity. 12. Heard both sides and perused the appeal records. 13. C.B.E. & C. in Para 3.2.1 of Circular No.120/01/2010-ST dated 19.01.2010 also clarified as follows on the issue:- "3.2 One-to-one co-relation between inputs and outputs and scrutiny of voluminous record [para 2(b) & (c) above] : 3.2.1 Similar problem of co-relation and scrutiny of large number of documents was being faced in another scheme [Notification No.41/2007-S.T., dated 6-10-2007] which grants refund of service tax paid on services used by an exporter after the goods have been removed from the factory. In Budget 2009, the scheme was simplified by making a provision of self-certification [Notification No.17/2009-S.T.] whereunder an exporter or his Chartered Accountant is required to certify the invoices about the co-relation and the nexus between the inputs/ input services and the exports. The exporters are also advised to provide a duly certified list of invoices. The departmental officers are only required to make a basic scrutiny of the documents and, if found in order, sanction the refund within one month. The reports from the field show that this has improved the process of grant of refund con....