In a significant case, the Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that exemption benefit under Excise notification is allowable on export under Rule 3 of Export of Service Rules.
M/s Gartner India Research and Advisory, the appellant isan exporter of service under Market Research Agency Services. The appellant filed a claim for refund of Service Tax paid on the services exported under Notification No. 11/2005-ST dated 19.04.2005. The claim was for an amount of Rs. 54,89,208/- and the same was filed on 04.03.2013.
The appellant was issued with a show cause notice dated 30.01.2014 on the ground that the export proceeds were received on 16.07.2012 and that the said notification was not having any effect after 01.07.2012. It was contended in the said show cause notice that the export proceeds were received after 30.06.2012.
The original authority through a refund order dated 12.08.2014 sanctioned a refund of Rs. 13,77,971/- and rejected a refund of Rs. 41,11,837/-stating that 50% of the export proceeds were received in INR. On appeal, the Commissioner (Appeals)upheld the said Order-in-Original dated 12.08.2014.
It was contended that on the rejection of the refund of Rs.13,77,971/-, the appellant was not issued with a show cause notice for the ground on which the same was rejected. The appellant did not get the opportunity to present their case.
It was observed that since the appellant could not present their case and adjudicating authority has made up his mind without taking into consideration the facts and contention of the appellant on the issue.
In case of the rejection of the refund of Rs. 27,33,267/-, it is to be examined whether the export took place on 30.06.2012 or after that. The CESTAT found that the notification states that the services should be exported in terms of Rule 3 of Export of Service Rules, 2005 to be eligible to avail of the benefit of said notification.
A Single member bench comprising Mr Anil G Shakkarwar (technical) observed that the appellant provided export under the said Rule 3 of Export of Service Rules, 2005 on 30.06.2012 and held that the said Notification No. 11/2005-ST applied to the appellant for the subject export. The Tribunal set aside the impugned order and allowed the appeal.
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