9911796707
TMI Blog2023 (5) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... als Nos.ST/40017/2014, ST/40018/2014 & ST/40023/2014 Brief facts are that the appellants are engaged in manufacture of ready-made garments and filed refund claim in terms of Notification No.17/2009-ST dated 07.07.2009 for refund of service tax paid by them on services provided to them by Custom House Agents, Technical Testing and Analysis Agencies. The refund claim was rejected on two grounds. Firstly, that it is time-barred. Secondly, that the conditions set out in the notification have not been fulfilled by the appellant. 2. Ld. Counsel Shri Hari Radhakrishnan appeared and argued on behalf of the appellants. With regard to the issue that the refund claim is time-barred, Ld. Counsel submitted that as per para 2(f) of the notification, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Notification No.17/2009 and submitted that there are no conditions attached in regard to the testing and analysis services. The department has sought to deny the refund claim on assumptions and presumptions. It is submitted that the appellant has to test the raw materials to comply with the stipulation of the foreign buyer. The raw materials as well as the finished products have been tested and the services are input services for which the appellant has paid service tax. It is urged that rejection of refund by the authorities below on this ground is not legal and proper. 4. The refund claim in respect of certain invoices has been rejected alleging that invoices issued by the service provider contains the address of the Head office at Gui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ular No.120/01/2010-ST 19.01.2010. Para 3.2 of the said circular states that when one to one correlation between inputs and outputs is not possible due to voluminous documents, the department can process refund on the basis of a declaration filed by the assessee which is certified by a person authorized by the Board of Directors, if the amount of refund is less than Rs.5 lakhs in a quarter. If the amount is in excess of Rs.5 lakhs, the declaration should also be certified by the Chartered Accountant. It is submitted by the Ld. Counsel that refund amount in these cases is very less and the declaration which was filed by the appellant ought to have been accepted to process and sanction the refund. 6. Ld. A.R. Mr. M. Ambe for the Revenue supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es have nexus with the finished products which are exported. We have to say that even if the services are used for testing of raw materials such services have nexus with the manufacturing of finished products and therefore eligible for credit/refund. Further, the period involved is prior to 01.04.2011 when the definition of "input services" had a wide ambit as it included the words "activities relating to business". It is also to be stated that there is no condition attached to the notification with regard to refund claim in regard to testing and analysis services. The rejection of refund claim on the ground that the testing and analysis services is availed for testing of raw materials does not find favour with us. 10. The next issue is wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) The testing and analysis services provided by services provider is for testing of raw material only and it has no nexus with the finished products exported by the appellant and therefore the refund of service tax is not eligible. (ii) The invoices issued by the service provider mentions the address of the Head office at Guindy whereas the input services have been availed by the manufacturing unit at Pallavaram. Hence refund under Notification No.17/2009-ST dated 07.07.2009 is not admissible. 13. As regard the first issue, in view of our findings recorded at para-9 above that there is no condition attached to the notification in regard to testing and analysis services for the purpose of refund and that even if the services are used ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
