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August 2011

(2011) 22 STR 625 (Tri.-Chennai) — Parmeshwari Textiles v. Commissioner of Central Excise, Tiruchirapalli.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Refund of service tax paid on technical testing and analysis service availed by exporter — Exemption under Notification No. 41/2007-ST by way of refund denied stating that service provider’s invoices not specific to export goods — Policy of Govt. not to burden exports with domestic taxes — Impugned order set aside.

Facts:
The appellant was denied refund by the lower appellate authority in respect of service tax paid for technical testing and analysis service on the ground that the appellant had not fulfilled the conditions specified in Notification No. 41/2007-ST, dated 6-10-2007 and that the service provider’s invoices were not specific to the export goods. The appellant contended that the order of the lower Appellate Authority denying the refund was not justified and was given without taking in consideration the facts.

Held:
The Tribunal observed that it is the policy of the Government to encourage exports and not to burden the export consignments with domestic taxes like the service tax which is paid in relation to the input service. The order passed by the original authority allowing the refund of input service tax in respect of the export goods was upheld by the Tribunal.

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