Service Tax Refund cannot be Rejected as Invoice Raised to Agent is as Good as Invoice Raised to Principal: CESTAT [Read Order]

The Ahmedabad Bench of the Tribunal comprising observed that the service tax refund cannot be rejected as invoice raised to agent is as good as invoice raised to principal.

The appellant in the present matter is Khushi Enterprise. The lower authorities have rejected the refund claim under Notification No. 41/2012 on the ground that the invoice of service is not in the name of the appellant whereas the same is in the name of Customs House Agent (CHA).

Devashish K. Trivedi, Counsel appearing on behalf of the appellant at the outset submits that as regard the first issue that whether the invoices are proper or otherwise, though the invoice was issued by the service provider to the CHA, but the same invoice also bears the name of the appellant which clearly co-relates the service, Service provider and service recipient.

The Counsel further contended that there is no dispute about the payment of service tax on the receipt of service by the appellant which is further reinforced on the basis of the invoice raised by the CHA to the appellant showing the same value as shown in the service provider’s invoice, therefore, proper co-relation is established, accordingly even though the invoice was not directly in the name of the appellant, refund cannot be rejected only on this count.

R.K. Agarwal, Superintendent (AR) appearing on behalf of the revenue reiterated the findings of the impugned order.

A Two-Member Bench of the Tribunal comprising observed that “It can be seen that, in the service provider’s invoice that is issued by M/s Indev Logistics Pvt. Ltd. the name of appellant is appearing as shipper name and in the corresponding invoice of the 4 Star Enterprises which is the appellant’s CHA is showing the exact amount of M/s Indev Logistics Pvt. Ltd. therefore the proper co-relation has been established.”

“In the case of Chamundi Textiles Ltd, the tribunal held that even though a document is in the name of another entity but on account of assessee credit cannot be denied on such document. Considering this decision in the case of refund also even though the invoice was raised to the agent of the appellant the refund cannot be rejected as invoice raised to the agent is as good as invoice raised to the appellant being the principal” the Bench noted.

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