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2016 (3) TMI 106 - AT - Service TaxRefund of service tax on exempted services covered by Notification No.41/2007-ST - Denied as paid prior to export - Held that: As per law if refund is not given in one quarter that shall be given in the next quarter. Therefore, embargo by the procedure would be a barrier to get the export incentive through refund of the service tax paid. Also denial of refund shall be a hurdle to the export as there being no one-to-one relationship prescribed by the notification between the input service and export. Furthermore, grant of refund is object of the notification but exemption is nomenclature. Therefore, denial of refund is contrary to law for the reason that taxes are not to be exported but only goods are to be exported. So, if the refund is denied, such denial shall make the goods costlier and will be a burden to the export which may make that in-competitive in the global trade. - Decided in favour of appellant
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