The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the rejection of the service tax refund claim on grounds of availing of CHA service before the date of export.
Sigma Moulds and Stampings Pvt. Ltd, the appellant assessee engaged in the manufacture of auto parts; having exported the goods they have claimed a refund of service tax of Rs.40,906/-, paid on input services availed by them.
The assessee appealed against the order passed by the Commissioner (Appeals) for rejecting the refund claim of the assessee.
Joy Kumar, the counsel for the assessee contended that the department erred in holding that “CHA Services” are not “input services” and the Department cannot reject the refund merely for the reason of wrong mention of the number of the notification.
Aneesh Dewan, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was not eligible for the refund claim filed before the department.
The Bench observed that the services availed are that of the CHA whose services are required at the Port of export and therefore, the services are bound to be later than the date of removal of goods from the factory and before the actual export and the services are availed before export, the contention of the Department was incorrect.
A single-member bench comprising Anjani Kumar (Technical) quashed the rejection of the refund claim filed by the assessee while allowing the appeal filed by the assessee.
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