Refund of service tax paid for export of goods duly allowable

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.

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