Custom, Excise & Service Tax Tribunal
C.S.T., Delhi vs M/S. Orient Craft Ltd on 20 October, 2014
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST BLOCK NO.II, R.K. PURAM, NEW DELHI-110066. COURT - II Appeal No.ST/52399/2014-ST[SM] [Arising out of Order-in-Appeal No.27/SVS/GGN/2014, dated 28.01.2014 passed by C.C.E.(Appeals), Delhi-III] C.S.T., Delhi : Appellants Vs. M/s. Orient Craft Ltd. : Respondents
Present for the Appellants :
Shri BB Sharma, DR Present for the Respondents :
Shri AK Jain, Rep.
Coram: Honble Mr.D.N.Panda, Judicial Member Date of Hearing : 20.10.2014 FINAL ORDER NO.54023/2014, DATED: 20.10.2014 PER: D.N.PANDA The present dispute of Revenue is that whether the service tax suffered on cargo handling service at the time of export of goods shall be simultaneously refunded when there is a draw back claim on the input suffering excise duty is made by the respondent. Revenue disputes that two claims cannot be allowed.
2. Respondent says that draw back is against credit availed on the inputs used for manufacture of excisable goods, whereas cargo handling service is availed after the goods were cleared and in the course of export. There is a distinction between these two levies. The draw back is confined to the levy under central excise law, which is before the clearance of the excisable goods. But the service tax paid on the services availed to export the goods is not subject matter of excise law for refund when the tax so paid relates to export.
3. Respondent is correct to say that taxes are not exported but goods are exported. Therefore, so far as service tax has suffered for the export not being exportable to be refunded. Similarly, draw back claim on input suffering duty when gave rise to exportable goods, that input duty is also refundable. Therefore, ld. commissioner (Appeals), vide his order dated 28.01.2014 had passed a proper order in para 4 thereof giving his reasons for the relief he has allowed to the respondent. His order is approved and the appeal of the Revenue is dismissed.
(Dictated and Pronounced in the open Court) (D.N.PANDA) JUDICIAL MEMBER SSK
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Appeal No.ST/52399/2014