Steel Strips Wheels Ltd. Vs CCE-Chandigarh-I (CESTAT Chandigarh)
CESTAT Chandigarh held that refund of service tax on CHA services; transportation of goods by Road services; port services paid for export of goods is duly allowable.
Facts- The appellant are registered with the department for payment of service tax under the category of Transport of goods by Road in a goods carriage and also engaged in manufacturer of Rims/Wheels of Automobiles and part of their production is exported out of India. The goods intended for exports are stuffed in the containers in the factory which is adjacent to ICD, Dapper and these are further transported to the final Port of Export and the movement of containers takes place partly by Road and partly by Rail.
The appellant has entered into an agreement with one party named as M/s Kuehne and Nagel Pvt Ltd (M/s KNL) who are paid lump-sum amount per MTs for arranging of all services relating to export of goods right from the factory of the appellants to the final destination to the goods in the Foreign country. The appellant filed refund claim of service tax paid on export of goods. The Original authority rejected the refund claim. Commissioner (A) upheld the same except clearing, shipping & forwarding & freight charges, etc.
Conclusion- Held that they had provided the service of customs clearances and related works to the clients of M/s KNL and even M/s KNL had given a certificate that M/s Sunrise Freight and Forwarders Private Limited had provided the service of customs clearance and related works to their clients but both the authorities have not been considered the certificate, therefore, in my view, the appellant are entitled to refund of service tax paid to CHA subject to verification of the certificate produced by the appellant.
Held that once the Ld. Commissioner (Appeals) has allowed some portion of freight by Rail then on the same logic, the refund of service tax paid on Transportation of goods by Road should have been also allowed. Hence, I hold that the appellant is entitled to refund of service tax paid on transportation of goods.
Held that the said services are rendered for handling the export containers at the port of exports. These services are rendered within the port area by various service providers and thus the same are in the nature of port service.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
These three appeals are directed against the common impugned order dated 21.04.2011 passed by the Commissioner (Appeals) of Central Excise, Chandigarh-I whereby the Ld. Commissioner (Appeals) has upheld the order-in-original passed by the original authority except with regard to clearing, shipping & forwarding & freight charges etc.
2. Since, the issues involved in all three appeals are identical and disposed of by way of a common order. Therefore, all these appeals are taken up together for discussion and disposal, the details of which are given herein below:-
