Contradictions Surface in Document Submission Claims Regarding Export Exemptions: CESTAT remands Case [Read Order]

The Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ), New Delhi bench has remanded a case, an exporter of man-made fabrics, over service tax exemption claims over contradictions in the document submission claims by the department.

Deekay Trexim, a manufacturer and exporter of man-made fabrics, had availed exemption under Notification No. 18/2009-ST for services related to exports specifically, Goods Transport Agency (GTA) services for transporting goods from the factory to the port, and services received from foreign commission agents.

The department, however, denied the exemption, alleging failure to produce essential documents like original consignment notes, invoices, and agreements.

While the adjudicating authority and Commissioner (Appeals) dismissed the company’s claims on the ground that original documents were not submitted, the appellant contended otherwise.

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The counsel of the appellant argued that certified copies of the required GTA service documents were filed along with the EXP-2 return and that a copy of the agreement with the overseas agent had been submitted during the adjudication process via additional submissions dated 29.12.2012. These claims were reportedly overlooked or contradicted in the impugned orders, leading to factual inconsistencies in the findings.

The Tribunal noted that Notification No. 18/2009-ST allows submission of consignment notes or similar documents issued in the name of the exporter, and that procedural lapses, like failure to submit originals when certified copies were available, should not defeat substantive benefits if core conditions were met. It also stated that exemptions intended to promote exports should not be denied due to minor technical non-compliances, especially when the actual export of goods was undisputed.

The bench of Dr. Rachna Gupta and Hemambika R Priya concluded that a fresh evaluation of records was necessary. The Tribunal directed the original authority to re-examine all submissions and provide the appellant an adequate opportunity to present the documents and be heard afresh before issuing any revised order.

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