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2013 (2) TMI 329 - Commissioner - Service TaxNotification No. 41/2007 – Whether the appellants are entitled for refund as per the Notification No. 41/2007-S.T., dated 6-10-2007 – Assessee filed refund claims under Notification No. 41/2007, dated 6-10-2007 as amended on commission paid to foreign commission agents. Exports were made under Drawback Scheme and DEPB Scheme and for the export made under Drawback Scheme, it was duly indicated by the Custom Department for the entitlement of Drawback in the shipping bills – foreign sales commission being considered as “input service – Held that:- Service tax paid on foreign commission has not been factored in computation of All industry rate of drawback prior to 2007 or after 2007 and that there services are not input services but are services linked to exports. Further Notification No. 33/2008, dated 7-12-2008 amended Notification No. 41/2007-S.T., dated 6-10-2007 omitted the clause “(e) the said goods have been exported without availing drawback of service tax paid on the specified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995” However 2% FOB value was increased to 10% of FOB value as per amended Notification 33/2008 dated 7-12-2008. In this case refund claims were filed before the date of said amendment and hence the restriction of 2% of FOB value by the Lower Adjudicating Authority needs no interference. Therefore the stand taken by the Lower Adjudicating Authority in rejecting the refund claims on the export made under Drawback Scheme founds to be not sustainable – In favour of assessee.
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