By Puloma Dalal, Bakul B. Mody, Chartered Accountants
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Is Filing of declaration after date of export of services a non compliance as to disentitle exporter from rebate in terms of paragraph 3 of the Notification No. 12/2005-ST ?
Facts:
The appellant engaged in the rendering of IT- enabled services such as technical support services, back office services, customer care services etc. to its clients situated outside India were taxable services under the Act.
Rule 5 of the said Export Rules provided for “Rebate of Service Tax” which, interalia, provided that where any taxable service was exported, the rebate of service tax paid or duty paid on input services or inputs would be available subject to conditions or limitations as specified in the notification issued for the purpose. Accordingly, Notification No. 12/2005-ST dated 19-04-2005 provided that, rebate of the duty on inputs or service tax and cess paid on all taxable input services used in providing taxable service exported out of India will be granted subject to conditions and procedures specified. The appellant lodged two claims for rebate in respect of service tax paid on input services like night transportation, recruitment, training, bank charges etc. However, the declaration required to be filed in terms of the Notification was filed after the date of export of taxable service. The rebate claims were rejected on the ground of late filing of the declaration beyond the date of export.
Held:
The very bedrock of the business of Call Centre relates to attending of calls on a continuous basis. It is difficult to conceive of any possibility as to how the appellant could not only determine the date of export but also anticipate the call so that the declaration could be filed prior to the date of export. Further, filing of declaration after date of export of services is not such a non-compliance as to disentitle exporter from rebate. Nature of service is such that they are rendered seamlessly, on continuous basis without any commencement or terminal points, and it is difficult to comply with requirement ‘prior’ to the date for export, except for description of services. Estimation is ruled out because of the words “actually required”. However, if particulars in declaration are furnished to Service Tax authorities, within a reasonable time after export, along with necessary documentary evidence, and are found to be correct and authenticated, object/purpose of filing declaration would be satisfied and appeal, thus, was allowed.
