TaxTMI 
TaxTMI 
2025 (8) TMI 1068
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....und claim was in respect of services viz. salt ploughing, heaping and salt harvesting and heaping (site preparation). The adjudicating authority, holding that salt is an excisable goods and all the activities are carried out in open field and there is no factory premises, the place of removal will be premises of production. The activities of salt harvesting, heaping and loading were considered activity carried out after the place of removal and thus, sanctioned the refund amounting to Rs. 17,75,487/ and Rs.11,33,891/- respectively for the above-mentioned periods. Against the said order of Adjudicating Authority, sanctioning the refund claims to the appellant, the department filed appeals before the Commissioner (Appeals). The learned Commissioner (Appeals) vide Order-in-Appeal dated 18.05.2015 allowed the appeals filed by the Department and disallowed the refund. Aggrieved by the said Order-in-Appeal dated 18.05.2015, the appellants filed these appeals before this Tribunal. 2. Shri L.S. Shah, learned Counsel for the appellant submits that the refund claims were filed as per Notification No. 41/2012-ST dated 29.06.2012. He submits that as per one of the conditions of Notification....
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.... plowing. It is nothing but harvesting process. Plowing exposes a fresh surface of the underlying large salt crystals. This fresh surface allows for further evaporation and the growth of larger, more pure salt crystals. Thus, salt crystals are being manufactured in crystallizing ponds through solar evaporation method. Once, salt is harvested from crystallizing ponds, it is removed from there for heaping at different location so that in crystallizing ponds another batch of salt production can take place. Harvested/manufactured salt is loaded and transported to another location for heaping activity. Heaping refers to the process of pilling salt. Heaping allows salt to dry further through exposure to air and sun. Thus, heaping is stock piling and it is necessary for handling and transportation of salt. Sometimes heaping is useful when salt needs to be packaged. 2.2 Learned Counsel for the appellant submits that in view of above mentioned process of manufacturing salt, the crystallizing pond can be treated as a 'factory' for manufacturing salt. The process of heaping is being carried out outside crystallizing pond and therefore, it can be said that the appellant has availed heaping ....
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....2 which reads as under:- "In exercise of the powers conferred by section 93A of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) number 52/2011-Service Tax, dated the 30th December, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 945(E), dated the 30th December, 2011, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby grants rebate of service tax paid (hereinafter referred to as rebate) on the taxable services which are received by an exporter of goods (hereinafter referred to as the exporter) and used for export of goods, subject to the extent and manner specified herein below, namely :- Provided that - (a) the rebate shall be granted by way of refund of service tax paid on the specified services. Explanation. - For the purposes of this notification,- (A) "specified services" means - (i) in th....
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....aping' and 'loading' under Notification 41/2012-ST mentioned above. 5.2 I agree with the submissions made by the learned Counsel for the appellant and I am of the view that the process of manufacturing of salt takes place in the crystallizing ponds which is equivalent to a factory for manufacturing of salt and as the process of heaping is carried out outside the crystallizing ponds, the heaping service can be considered as having taken place beyond the place of removal. Therefore, the appellant is entitled to get the rebate by way of refund of service tax. 5.3 I also agree with the learned Counsel for the appellant that the terms of notification should be interpreted in a way so that the purpose of the notification can be achieved. In Nupur Viniyog Pvt. Limited (supra) it has been rightly held that once it is not in dispute that the services are specified for refund purpose, and since Service Tax was actually paid on specified services pertaining to export activity, in terms of the broad scheme of refund under Notification No. 41/2012-S.T. (supra) as amended with clarifications, refund must be granted to the exporter. It is my considered view that the order passed by the Lear....