The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), allowed refund of service tax paid to Customs House Agent (CHA) subject to verification of customs clearance certificate. The appellant, M/s Steel Strips Wheels Ltd, is 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 filed refund claim of service tax paid on export of goods. The appellant along with appeal has also attached documents furnished at the time of filing the refund claim.
The appellant has also annexed the copy of the appeal filed before the Commissioner disclosing the certificate issued by M/s KNL to the effect that they had appointed M/s Sunrise Freight and Forwarders Private Ltd. as a sub contractor for customs clearance and related works. The Counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further submitted that the Commissioner (Appeals) in principle has accepted that M/s KNL was providing the service which were being used for the export of the goods and he has himself allowed the refund on the portion of freight by rail. He further submitted that the invoices for the entire service has been issued by the M/s KNL who in turn had availed the services of the agency who had transported the goods by rail. A Two-Member Bench comprising observed that
“As far as, the CHA services are concerned, the appellant had produced that the CHA M/s Sunrise Freight and Forwarders Private Limited has provided a certificate 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.”