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2023 (2) TMI 481 - AT - Service TaxRejection of refund claim - services availed in relation to export of goods - GTA Service - Port Service - Technical Testing and Analysis Service - applicability of N/N. 41/2007-S.T., dated 6-10-2007 - It is the observation of the Ld.Commissioner(Appeals) that one to one co-relation of the services i.e. datewise accumulation of the materials within the port as per LR, loading of the same in the ship etc. has not been done and in absence of one to one co-relation the refund is inadmissible and cannot be allowed. HELD THAT:- As per Notification No. 41/2007-S.T. certain co-relations are required to be made before sanctioning the refund claims. It is observed from C.B.E. & C. Circular No. 120/01/2010-S.T., dated 19-1-2010 that exporters were facing certain difficulties in relation to one to one co-relation between input services and the exports made. So far as admissibility of Service tax paid on GTA Services is concerned, it is observed that similar refunds were allowed by CESTAT in the case of Jumbo Mining Ltd. v. CCE Hyderabad [2012 (7) TMI 739 - CESTAT, BANGALORE] by holding that It cannot be the case that the goods are exported from Kakkinada Port without being transported from the factory of the appellants as claimed by them. Therefore, in the peculiar facts and circumstances of the case, the compliance of condition No. (iii) should be ascertained by broadly correlating the evidence relating to transport and service tax paid on such transport charges and the quantity exported. C.B.E. & C. in Para 3.2.1 of Circular No. 120/01/2010-S.T., dated 19-1-2010 also clarified that The departmental officers are only required to make a basic scrutiny of the documents and, if found in order, sanction the refund within one month. The reports from the field show that this has improved the process of grant of refund considerably. It has, therefore, been decided that similar scheme should be followed for refund of CENVAT credit under Notification No. 5/2006-C.E. (N.T.). The procedure prescribed herein should be followed in all cases including the pending claims with immediate effect. Though the above clarification was with respect to Notification No. 5/2006-C.E. (N.T.) but it clearly conveys that in budget 2009 the scheme under Notification No. 41/2007-S.T. was simplified in Notification No. 17/2009-S.T. by providing self certification or Chartered Accountant’s certification about co-relation and nexus between input Services & the exports. That above logic can be followed for Notification No. 5/2006-C.E. (N.T.) where such simplification of Notification No. 17/2009-S.T. may not be available. Appeal allowed.
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