Case Law Details
N.M. Zackriah & Co. Vs Commissioner of Service Tax (CESTAT Chennai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chennai has issued an order in the case of N.M. Zackriah & Co. vs. Commissioner of Service Tax, emphasizing that service tax exemptions cannot be claimed without fulfilling the prescribed conditions. This article provides a comprehensive analysis of the CESTAT’s decision.
The case revolves around N.M. Zackriah & Co., which is engaged in the manufacture and export of Full Shoes and Shoe Uppers. The company utilized services classified under ‘goods transport agency service’ and ‘business auxiliary service’ provided by commission agents located outside India in relation to the export of goods.
The appellant had filed Form EXP-1 on 20.11.2009 to avail an exemption from paying Service Tax for two specified services, as per Notification No. 18/2009-S.T. dated 07.07.2009. Subsequently, they filed Form EXP-2 on 31.12.2010, based on which they claimed exemption from Service Tax.
The Revenue authorities noticed that the appellant had claimed exemption from Service Tax for 52 shipping bills. Out of these, 51 shipping bills pertained to the period from 08.12.2009 to 31.03.2010, and their details were submitted only on 31.12.2010, missing the due date of 15.10.2010. Furthermore, it was observed that the appellant had not complied with the stipulated condition that required the submission of original documents reflecting the actual payment of commission along with a copy of the contract.
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