TaxTMI 
TaxTMI 
2024 (3) TMI 856
X X X X Extracts X X X X
X X X X Extracts X X X X
....ort of footwear. The appellant had been utilizing various input services including goods Transport Agency (GTA) Service and commission paid to agents located outside India under 'Business Auxiliary Service (BAS). They filed Form EXP - I on 13.8.2009 in order to avail exemption from payment of service tax relating to the above said services under Notification No. 18/2009-ST dated 7.7.2009. Subsequently, they filed Form EXP-2 on 11.2.2010 based on which they claimed exemption from payment of service tax relating to the services received from foreign commission agents in relation to export of their final products. It was observed that the appellant has not followed the condition laid down in Condition No. 4(i) prescribed under Col. No. 4, Cond....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s payable only after the receipt of the export proceeds which will fall in the subsequent half year(s) and hence were provided subsequently. The foreign agency commission is payable in foreign currency and hence the bank certificates are given in foreign currency and are substantial proof of payment to the agent abroad. The same should have been considered for allowing the exemption claimed. The form EXP-1 is to be filed before availing the exemption under the said notification and the exemption is first availed by filing form EXP-1 and as such was filed much before the filing of form EXP-2. The delay in filing of EXP-2 is only procedural in nature and the substantial benefit cannot be denied merely based on the procedural delay or lapses. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cuments showing actual payment of commission to the Commission Agent as obligated under the notification The order goes on to conclude that there is no provision in the notification to condone the delay in filing the return and hence rejects the appeal. 6. We find that this is a case where the Appellant seeks the benefit of an exemption notification meant for export promotion as per the Policy of the Government of India, to allow relief of taxes paid on the services used in manufacture of export products. The Hon'ble Apex Court in a Constitution Bench judgment in Sardar Amarjit Singh Kalra (Dead) by Lrs. v. Pramod Gupta (Smt) (Dead) by Lrs. & Anr. [(2003) 3 SCC 272] observed; "26. Laws of procedure are meant to regulate effec....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the provision is used and the purpose it seeks to achieve should also be examined. A beneficial legislation should not be viewed very rigidly. It is noted that there were no allegations of any blame worthy act by the Appellant. The claim should hence have been scrutinized and the Appellant allowed to satisfy whatever doubts that the Original Authority had. In the circumstances, the substantial rights of the appellant should not have been denied on procedural grounds. 7. While it is the role of the learned Original Authority to effectively discourage fraudulent and dishonest exporters, there is no murmur of such an intention by the Appellant. It has to be kept in mind that the departmental Dispute Resolution Mechanism is intended to disc....