Order date – 23 August 2022

Facts – 

• The appellant, M/s Kashvi Power and Steel Private Limited, were allowed by Assistant Commissioner the exemption by way of sanctioning an amount of Rs.58,74,409/- as refund of Service Tax paid on the taxable specified service for export of goods made under Bills of Export claimed by the Appellant assessee. 
• The Department filed an Appeal on the ground that the Adjudicating authority had erred in sanctioning refund of Service Tax amounting to Rs.55,92,035/- only against the Bill No.P1194/14-15 dated 16.08.2014 issued by the traffic department, Paradeep Port Trust for the full year i.e. from 09.04.2014 to 08.03.2015, which is beyond the coverage period of the last month of export i.e. August 2014.
• The Appeal was allowed in which they modified the Order-in-Original on the ground that the Appellant assessee is eligible for refund of Service Tax paid on pro-rata basis and is not entitled to refund of Rs.32,62,020/-. 
• Aggrieved, the appellant filed an appeal.

Issue – 

• Whether the order passed by Commissioner(Appeals) modifying original order on the ground that the Appellant is eligible for refund of Service tax paid on pro-rata basis is maintainable?

Order – 

• The Tribunal observed that the since Service tax was actually paid on ‘specified service’ pertaining to export activity, in terms of particular scheme of refund under Notification No.41/2012-ST dated 29.06.2012 as amended with clarifications, the exporter is eligible for refund.
• Also, any service which is being received by an exporter of goods and are used exclusively for the export of goods and the Service tax thereof has been paid, the refunds can be claimed provided that the services are rendered at a place which is neither the factory, nor any other place or premises of production or manufacture. 
• Further, substantive benefit should not be denied to an assessee if the conditions are fulfilled. It would not be out of place to mention that the sole intention of the Government to introduce this rebate schemes is to promote Indian exporters to enjoy a level playing field and to compete with the exporters of other countries in the global market. Further, it has never been the intention of the Government to export taxes hence after much deliberation these schemes have been notified and the refund claims if rejected on such grounds, will defeat the very purpose of rebate schemes.
• Therefore the order passed by the Ld.Adjudicating authority stands restored. Appeal is thus allowed.