TMI Blog2024 (3) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... dure are meant to regulate effectively, assist and aid the object of doing substantial and real justice and not to foreclose even an adjudication on merits of substantial rights of citizen under personal, property and other laws. Procedure has always been viewed as the handmaid of justice and not meant to hamper the cause of justice or sanctify miscarriage of justice. It is not disputed that there has been a delay in filing the EXP-2 Return the reason for which has been explained by the Appellant. This delay is not shown to cause any prejudicial consequence for Revenue. However, the Appellant had furnished material which shows a substantial compliance with the requirements of the exemption notification - While determining whether a provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant for the Appellant Shri Harendra Pal Singh, AC (AR) for the Respondent ORDER This appeal is against Order in Appeal No. 13/2014 dated 2.1.2014 passed by the Commissioner of Central Excise (Appeals), Chennai (impugned order). 2. Brief facts of the case are that the appellant is engaged in the manufacture and export of footwear. The appellant had been utilizing various input services including goods Transport Agency (GTA) Service and commission paid to agents located outside India under Business Auxiliary Service (BAS). They filed Form EXP I on 13.8.2009 in order to avail exemption from payment of service tax relating to the above said services under Notification No. 18/2009-ST dated 7.7.2009. Subsequently, they filed Form EXP-2 on 11.2.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort promotion measure as per the Policy of the Government of India, to allow relief of taxes paid on the services used in manufacture of export products. The liability to pay service tax arises only after the payment of the commission amount. As per the agreement with the agents the amount of commission is payable only after the receipt of the export proceeds which will fall in the subsequent half year(s) and hence were provided subsequently. The foreign agency commission is payable in foreign currency and hence the bank certificates are given in foreign currency and are substantial proof of payment to the agent abroad. The same should have been considered for allowing the exemption claimed. The form EXP-1 is to be filed before availing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Appeal while favorably considering the same the impugned order goes on to record that the Appellant has not produced the following documents also; (i) Shipping Bill showing that commission was paid (ii) A copy of the agreement / contract with the Agent (iii) Original documents showing actual payment of commission to the Commission Agent as obligated under the notification The order goes on to conclude that there is no provision in the notification to condone the delay in filing the return and hence rejects the appeal. 6. We find that this is a case where the Appellant seeks the benefit of an exemption notification meant for export promotion as per the Policy of the Government of India, to allow relief of taxes paid on the services used i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be granted as exemption. Substantial compliance with the requirements of the notification was evident. While determining whether a provision is mandatory or directory, in addition to the language used in the notification, the context in which the provision is used and the purpose it seeks to achieve should also be examined. A beneficial legislation should not be viewed very rigidly. It is noted that there were no allegations of any blame worthy act by the Appellant. The claim should hence have been scrutinized and the Appellant allowed to satisfy whatever doubts that the Original Authority had. In the circumstances, the substantial rights of the appellant should not have been denied on procedural grounds. 7. While it is the role of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim for duty exemption as per Notification 18/2009 Service Tax, dated 07/07/2009 only. It is clarified that the procedural issue relating to delay in filing the return and imposing penalty having been set aside, are not a part of the terms of remand. The lower authority shall follow the principles of natural justice and afford a reasonable and time bound opportunity to the appellant to submit evidence and state their case both orally and in writing if they so wish, before issuing a speaking order in the matter. The appellant should also co-operate with the adjudicating authority in completing the process of verification expeditiously and in any case within ninety days of receipt of this order. The appeal is disposed of accordingly. (Pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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