Order Date – 12 January 2023

Parties: Welspun Global Ltd Vs C.C.E. & S.T.-Rajkot

Facts –

• The Appellant, Welspun Global Ltd had availed the said service of Foreign Commission Agent and paid Service Tax under Business Auxiliary Service on reverse charge basis.
• The claim of refund of Service Tax paid for export of goods under Notification No. 17/2009-ST. by the appellant was denied due to failure to produce original invoices on the foreign Agent commission Service availed by the appellant in respect of export of goods, Custom and House Agent Service.

Issue –

• Whether the appellant is entitled to get the refund?

Order –

• The Tribunal relied on the decision in the case of M/s. VST INDUSTRIES LTD (Cestat) wherein it was held that “the non-fulfilment of the technical conditions is only a procedural lapse and can be condoned. In view thereof, I hold that the appellants are eligible for refund.”
• Thus, refund of Service Tax on Foreign Agent Commission cannot be denied. Appeal on this count is allowed.
• In respect to the CHA issue, it was found that the observations of Commissioner (Appeals) are in contradiction with the directions of CBIC clarification issued in respect of Notification No. 41/2007-ST dated 06.10.2007 wherein it has been provided that for verification of refund claim,  normally certified copy of the documents should be accepted. Only in the case of in-depth enquiry 
• original documents can be verified. Hence, the order of Commissioner (Appeals) on this count is set aside and matter remanded to the original adjudicating authority with directions to follow the Circular of CBIC in this regard.