2018 (4) TMI 666

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.... that respondent herein, is an exporter of goods, exported consignments on which they paid commission to a person located outside India, discharged service tax liability under  reverse charge mechanism under an impression that they are liable to discharge liability and subsequently noticing that they are eligible for exemption under Notification No. 18/2009-ST dated 07/07/2009, they filed an application for the refund of such service tax erroneously paid by them.  4. The adjudicating authority, after following due process of law, rejected the refund claim filed by the respondent. The appellate authority after considering the entire issue and noticing that there was no dispute as to the factual matrix of export of the goods and ....

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....submissions made by both the sides, I find that the facts are not in dispute and it is admitted by both the lower authorities that the respondent-exporter need not have discharged the service tax liability on the commission paid by him to a  person situated abroad as benefit of Notification No. 18/2009 is available and thus the dispute is only on the ground that the procedure stated under Notification No. 18/2009-ST dated 07/07/2009 has not been followed, of mentioning the commission amount on the shipping bill or in the bill of export. I find that the first appellate authority has recorded a detailed findings in paragraph No.7 and 8 which I concur with and reproduce the same.  "7. A perusal of the procedures laid down in....

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....hese statutory elements are not disputed then denying the benefit of an exemption notification claim only on the basis of a procedural lapse is unjust. In this context I find strength in the argument of the Appellants that when the substantive/mandatory conditions me fulfilled then the claim should not be rejected for lapses in minor procedural/directing conditions of the Notification. There are number of judgments on the issue where it has been held that substantive benefits cannot be denied for procedural lapses. The incentive oriented beneficial schemes are intended to boost exports and where the substantive fact of export made is not in doubt, liberal interpretation is to be accorded in cases of technical lapses so that the purpose of i....