Order Date – 12 June 2023

Parties: M/s. Kalpataru Agroforest Enterprises Pvt. Ltd. Vs Commissioner of CGST & CX, Kolkata North Commissionerate

Facts – 

• The Appellant, M/s. Kalpataru Agroforest Enterprises Pvt. Ltd., has exported fly ash to Nepal and claimed refund claim of Service Tax paid by them for the freight charges incurred in these exports.
• Authorities have rejected the refund claim on the ground that the appellant has received the reimbursement for the Railway Freight from the overseas importer.

Issue – 

• Whether the refund is allowed on freight charges incurred by the appellant?

Order – 

• The Tribunal observed that the what is being claimed as refund is the Service Tax paid by the Appellant on such freight charges. It is seen from the records that Appellant has not sought any reimbursement or payment from the overseas importer for the Service Tax paid by him. Therefore, in these two cases, it is clear that the Appellant has borne the Service Tax portion paid by them.
• The Lower Authorities have erred in rejecting the refund claim on the ground that Appellant has received reimbursement from the overseas importer. As the Appellant has borne the Service Tax component himself, it was held that he is entitled to get refund.