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Order date – 5 April 2023

Parties – M/s Gartner India Research And Advisory Services P. Ltd. Vs Commissioner of Central Goods And Service Tax-Mumbai East

Facts –

The appellant, M/S GARTNER INDIA RESEARCH AND ADVISORY SERVICES P. LTD., are exporter of service under Market Research Agency Services. For the period from April 2012 to June 2012 appellant filed claim for refund of Service Tax paid on the services exported under Notification No. 11/2005-ST dated 19.04.2005. The claim was for an amount of Rs. 54,89,208/- and the same was filed on 04.03.2013.
However, the appellant was issued a show cause notice dated 30.01.2014, alleging that the export proceeds were received on 16.07.2012 and that the said notification had no effect after 01.07.2012. It was further contended that since the export proceeds were received after 30.06.2012, the refund was not admissible to the appellant.

Issue –

Whether refund can be rejected without putting the appellant on notice for the ground on which refund was rejected?

Order –

It is observed that firstly, the rejection of refund of Rs.13,77,971/- without putting the appellant on notice for the ground on which the refund was rejected is not sustainable since the appellant was not given an opportunity to present their case.
Secondly, the date of export of service is crucial to determine whether the appellant is eligible to avail the benefit of Notification No.11/2005-ST, which was in force till 01.07.2012.
It was found that the relevant invoice for the export raised on 30.06.2012, and therefore, the export of service was completed on the same day.
Thus, the Notification was applicable to the appellant for the subject export. Accordingly, the impugned order was set aside, and the appeal was allowed.

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