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2023 (10) TMI 815 - AT - Service TaxRebate/refund claim of SBC & KKC - export of Basic Grade Pig Iron to Rayang/Thailand under cover of Shipping Bill - export of Non-Alloy Pig Iron from Paradeep Port in terms of Notification No.41/2012-ST dated 29.06.2012 - denial on the ground that there is no specific provision in the subject Notification No.41/2012-ST dated 29.06.2012 for granting refund of the said SBC & KKC. HELD THAT:- Notification No.41/2012-ST is clearly stating grant of refund of service tax paid on services used for export of goods and sub-section (2) of section 119 of Finance Act, 2015 and sub-section (2) of section 161 of the Finance Act, 2016 clearly stipulate SBC and KKC as service tax respectively; that sub-section (5) of section 119 of the Finance Act, 2015, and subsection (5) of the section 161 of the Finance Act, 2016 also stipulate that all provisions relates to refund of service tax under Finance Act, 1994 shall be applicable to refund of SBC & KKC. Therefore, the said provisions were not taken into consideration by the authorities below. SBC has been levied as Service Tax only as has been stated to in Section 119(2) of the Finance Act, 2015 and the rate of SBC @ 2% of value of taxable services proposed under the Finance Act, 2015 has been reduced to @ 0.5% of value of taxable services vide Notification issued under Section 93(1) of the Finance Act, 1994 which enables Central Government to grant exemption from Service Tax. Therefore, SBC has been given status of Service Tax levied under the Finance Act, 1994 for the purpose of refund/rebate. Notification No.12/2013-ST dated 01.07.2013 also had specifically provided refund of service tax leviable under Section 66B of the Finance Act, 1994 whereas SBC & KKC have been levied under section 119 of the Act inserted vide Finance Act, 2015 and Section 161 of the Act inserted vide Finance Act, 2016, respectively, hence there was legal requirement to amend NotificationNo.12/2013-ST vide Notification No.2/2016-ST and Notification NO.30/2016-ST dated 26.05.2016 to include SBC & KKC for refund under Notification No.12/2013-ST as SBC & KKC are not leviable under Section 66B of the Finance Act, 1994; whereas Notification No.41/2012-ST dated 29.06.2016 has allowed refund of service tax without specifying whether leviable under Section 66 or Section 66B of the Finance Act, 1994 and hence, no amendment in Notification No.41/2012-ST was/is legally required to be undertaken. The impugned orders set aside - appeal allowed.
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