Order Date- 27 September 2022

Facts-

• The Appellant, Fi-Tech Private Limited, has filed a present appeal being aggrieved by the rejection of refund of service tax on input services used for export of services without payment of service tax for the period from October, 2010 to December, 2010 for Rs.3,61,389/-. 
• The Show-cause Notice dated 02.01.2012 was issued proposing to reject the claim of refund on the ground of improper address in the invoice, non-mention of address in the invoice, etc. 
• The Ld. Adjudicating authority passed the order rejecting the refund claim on the above grounds which was further confirmed by the Ld. Appellate authority. Hence the present appeal.

Issue-

• Whether just because of procedural error in the invoices for input services with regard to the address of the Appellant, can the substantive benefit of refund be denied to the Appellant?

Order-

• The Tribunal observed that the error in address can at best be termed to be a clerical error for which the Appellant has also produced a certificate from the Service provider clarifying the error in the floor number. Hence, when the receipt of services is not in dispute, the benefit of refund should not be denied to the Appellant as per the settled jurisprudence in this regard.
• The Tribunal referred to the judgment of Sambhaji Versus Gangabai 2009 (240) E.L.T. 161 (S.C.) wherein it has been held that “A procedural law should not ordinarily be construed as mandatory, the procedural law is always subservient to and is in aid to justice. Any interpretation which eludes or frustrates the recipient of justice is not to be followed. Processual law is not to be a tyrant but a servant, not an obstruction but an aid to justice. A procedural prescription is the handmaid and not the mistress, a lubricant, not a resistance in the administration of justice.”
• The Tribunal relied on the judgment of the Hon’ble Supreme Court and held that the appeal succeeds and the Order-in-Appeal and the Order-in-Original are set aside. The department is directed to process the refund claim within 8 weeks from the submission of the order copy as per the process of law. 
• Thus, the appeal is allowed with consequential benefits.