The Customs Excise and Service Tax Appellate Tribunal, New Delhi held that banking services are related to the collection of export proceeds and allowed refund claims.
The appellant is engaged in manufacture and export and thus, had filed a refund claim of Service Tax for Rs.8,58,102/- along with supporting documents for the period from October 2016 to December 2016 under Notification.
The said Notification was amended vide Notification so as to inter alia, allow refund of Service Tax on services used beyond the factory or any other place or premises of production or manufacture of the said goods, for export of the said goods.
Department on examination of the refund claim found that the claim has been filed in respect of services used in the export of goods, namely, cargo handling service, port service, banking, and other financial services and GTA services, which are the specified services under the said Notification.
The department observed that the invoices pertaining to refund claim of Rs.8,320/- is filed with the invoices, which have no mention of address or on the basis of a draft invoice. It was also found that the refund claim of Rs.17,430/- is in respect of banking services, which do not appear to be used in the export of services.
Alleging the said claim to, therefore, be inadmissible that a show-cause notice was served upon the appellants proposing the rejection of the said refund claim of Rs.27,931/- out of the total claim of Rs.8,58,102/- along with interest and the penalties.
The said proposal was initially confirmed vide Order-in-Original refund claim of Rs.8,30,171/- was accepted and that of Rs.27,931/- (8320+17430) was rejected. The appeal thereof was rejected by vide Order-inAppeal.
Being aggrieved, the appellant is before this Tribunal.
The Coram comprising of Judicial Member, Rachna Gupta pronounced the order based on an appeal filed by M/s. Baba Super Minerals Pvt. Ltd.
The Tribunal said that the appellant that refund cannot deny on two grounds that the Invoices be inadmissible, as they lack the material particulars and the Banking and Financial Services are not for the export as it is sustainable as all the relevant details as are required under Rule 4 A (1) of Service Tax Rules, 1994 are duly available on the said invoices, irrespective that the invoices were draft invoice.
Judicial Member observed that the C.A. Certificate was furnished certifying all the relevant details to be correct. As far as Banking and Financial Services are concerned, it is submitted that original invoices for those services were produced by the appellant.
While relying upon the decision in the case of CCE, Raipur vs. Satyam Balaji Rice Industries Ltd. alleging that the refund claim has wrongly been rejected and appeal were allowed.
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