Refund :Services consumed in course of export are eligible

Services consumed in course of export are eligible for refund irrespective of their classification by service provider

[2015] 58 taxmann.com 7 (Mumbai - CESTAT)

CESTAT, MUMBAI BENCH

Crystalline Exports Ltd.

v.

Commissioner of Service Tax, Mumbai

Section 93 of the Finance Act, 1994 - Exemptions - Service Tax - Refund of tax paid on services used for export goods - Assessee filed a claim for refund of service tax paid on Terminal Handling Charges, Customs House Agent's charges and banking charges - Department denied refund claim on ground that said services were not covered/charged to service tax under Port Service - HELD : As per Circular dated 12-3-2009, if it is not in dispute that service availed by assessee is in course of their business of export and assessee has paid service tax thereon, it may not be examined under which category service provider has paid service tax thereon - Since, in this case, assessee had used these services in course of business of export, therefore, assessee was entitled for refund claim on account of input service on terminal handling charges [Paras 4 and 5] [In favour of assessee]

Circulars and Notifications : Notification No. 41 /2007-S.T., dated 6-10-2007, Circular No. 112/6/2009-S.T., dated 12-3-2009