No Co-relation Required to Claim Refund: CESTAT allows Refund of Service Tax paid for Banking and Financial Services [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad bench, while allowing refund of service tax paid towards Banking and Financial Services, has held that the co-relation is not required to claim refund of service tax.

The appellant, Welspun Global Ltd was aggrieved by the order of the tax authorities denying refund of Service Tax paid towards Banking and Financial Services on ground of failure to correlate the services availed with the exports of goods.

Member (Technical), Mr. Raju observed that “the said refund has been rejected on the ground that the appellant has failed to correlate the services availed with the exports of goods. Learned Counsel pointed out that they are engaged only in the export of goods and there is no other business therefore, all the services availed are in relation to export of goods. He pointed out that they had made a specific claim before the lower authority. All the business of the appellant was export of goods, therefore, no corelation was necessary as all the services were availed for export of goods. It is seen that the Commissioner (Appeals) has not taking note of this observation. If the said assertion is correct then no co-relation may be required for claiming the refund. However, since this fact has not been examined by the lower authority. The order of this account is set aside, the matter remanded to the Adjudicating authority.”

To Read the full text of the Order CLICK HERE

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