2023 (1) TMI 543 - AT - Service Tax
Refund of Service Tax paid for export of goods under Notification No. 17/2009-ST - Foreign Agent Commission - Banking and Financial Services - failure of appellant to produce the original invoices - refund of service tax is paid on Banking and Financial Services have been denied on the ground that the appellant have failed to correlate the said services availed by them with the export of goods - HELD THAT:- The admissibility of refund on Foreign Agent Commission has been examined by Tribunal in the case of M/S VST INDUSTRIES LTD. VERSUS CCE, C & ST, HYDERABAD [2017 (10) TMI 24 - CESTAT HYDERABAD] wherein it was held that The procedures prescribed in the notification are to facilitate verification of the claims. Since there is no dispute with regard to the export made or the service tax paid, the non-fulfilment of the conditions is condonable, the non-fulfilment of the conditions is only a procedural lapse and can be condoned - thus, refund of Service Tax on Foreign Agent Commission cannot be denied.
Rejection of refund in respect of CHA services - appellant failed to provide the original copy of invoices - HELD THAT:- The Commissioner has observed that due to statutory requirement of rule 4A of the Service Tax Rules, 1994, the Invoice/ bill/ challans, on which the refund is sought, has to be mandatorily signed by the person providing taxable service or by a person authorized by him in respect of such taxable service. Therefore, it can be clearly inferred that the invoices are to be submitted in original - Learned Counsel argued that they had produced this circular before the lower authority but no findings have given. It is seen that the observations of Commissioner (Appeals) are in contradiction with the directions of CBIC. The order of Commissioner (Appeals) on this count is set aside and matter remanded to the original adjudicating authority with directions to follow the Circular of CBIC in this regard.
Denial of refund of Service Tax paid on Banking and Financial Services - appellant has failed to correlate the services availed with the exports of goods - HELD THAT:- All the business of the appellant was export of goods, therefore, no co-relation was necessary as all the services were availed for export of goods. It is seen that the Commissioner (Appeals) has not taking note of this observation. If the said assertion is correct then no co-relation may be required for claiming the refund. However, since this fact has not been examined by the lower authority. The order of this account is set aside, the matter remanded to the Adjudicating authority.
Appeal allowed in part and part matter on remand.