Johnny and Service Tax Refund [Series- II] Part 4: ?Conditions relating to Claim of Rs. 500/-’ | Tax Refund Form

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Tax Refund Sort

Johnny and Company Tax Refund [Series- II]

Part 4: ‘Conditions relating to Claim of Rs. 500/-’

By: –

CA. Pradeep Jain

Mayank Palgauta

Pay a visit to us at: www.capradeepjain.com

To prolong the sequence of the content on Refund claims to exporters we here under this write-up are expressing the miserable circumstance of exporters claiming refund claims for company tax compensated on services utilised in export of items. This is the fourth report in a row of this series of posts. In the prior three posts we had elaborated the problems faced by the assessees in acquiring the refund claim under Invoice, CHA services and Port solutions.

In this fourth article we are trying to current the grounds on which departmental authorities are disallowing the refund claims relating to “Volume of 500/-” versus the providers on which refund has been claimed. This total state of affairs is humorously picturized by the way of poems and conversation amongst Johnny (an assessee) and his father. This Endeavour is just to provide out the issues faced by exporters.

Johnny and Jill went up the hill, to get the refund purchase
Johnny arrived back with a lack
And Jill came hopeless following.

Presently, assesses are claiming refund orders on the various services which are specified in the Notification No. 17/2009-ST dated 07/07/2009. The refunds claimed by the assessees as versus their exports are their constitutional rights but are currently being declined by the departmental authorities alleging that the assessee has filed the claims in which the service tax paid volume is significantly less than Rs. 500/- which is highlighted as underneath: -

Johnny-Johnny!  Yes papa!

Got the refund?

No Papa,

Telling lies?

No Papa,

What’s the reason?

This papa: -

Johnny says:  I went to the department to get the refund for different specified services but division stated: -

Johnny-Johnny go away,
Arrive again another day.
Your refund purchase has subsequent Flay: -

The claims of refund made in respect of Several Specified Solutions are not admissible to us as “we have claimed refund of service tax paid in respect of services (for example CHA companies, Cleansing Companies, Courier Providers, Transportation Expenses and so forth.) exactly where service tax compensated is much less than Rs. 500/- as this kind of, the explained claims are not admissible for refund in watch of the provisions of explained notification.”

Johnny’s Submission: -

In respect to the above allegation, we submit that this is a totally wrong allegation raised by the realized adjudicating authority since it is described in the notification 17/2009-ST that-

(h) no refund claim shall be authorized if the identical is for an amount less than rupees five hundred.

Here the refund claim means a whole of all the invoices filed for the refund declare. The clause specifies that when any refund declare for the companies utilized in the program of export to be filed, the complete declare should not be under Rs. 500/-. Our refund claim, for the providers utilized in the course of export of items, is also far more than Rs. 500/-. As a result refund can not be denied to us taking this sort of contentions.

Even more the Notification’s level No. two clause (b) says that service tax exemption will be claimed by the producer- exporter on the services availed throughout the program of export in “Kind A-1″. The Sort A-1 also begins with the-

I/We declare refund of Rs……….. (Rupees in phrases) underneath Notification No.17/2009-ST. Dated 07.07.2009 in respect of service tax paid on solutions used for export of products

The starting para of the Form A-one clarifies the intention of the Federal government that the refund has to be seen “in total”. If the identical was not the intention of the Govt there was no want to start off the sort like this.

Even more the format that is prescribed in the Kind A-one, annexure to the Notification also give the columns as S. No. Facts of the merchandise exported on which refund of the service tax has to be claimed etc. There are a amount of facts call for in the table which shows that the refund will claimed in whole only.

Johnny says:  I went to the division next day yet again with the over submission but department explained: -

Johnny-Johnny go absent,
Arrive once again another day.
Your refund order has subsequent far more flay: -

In next time the Realized Adjudicating Authority came with a new and in contrast to method stating that the as an alternative of seeing all the invoices as a complete claim, particular person invoice of the service supplier forms a single claim of refund in terms of notification no. 17/2009-ST and so the restrict of Rs. 500/- shall be witnessed per invoice somewhat than per delivery bill or per declare.

Johnny’s Submission: -

In this respect it is submitted that the reduce restrict of Rs. 500/- as prescribed in the notification really should be of the total declare as reflected by the language of notification. The notification no. 17/2009 utilizes the term “refund claim” or the “declare of refund” at different places. There is no doubt that all the conditions prescribed in the notification applies to this declare of refund. If the contention of the Learned Authority is accepted that the declare of refund really should be witnessed per invoice of service provider, it would exclude the tiny/rising exporters who has particular person invoice with less than Rs. 500/- but if this is seen in complete then constitute the increased sum from aforesaid limit. Further, the refund claim signifies the total claim filed by the exporter in respect of every invoice / shipping bill. This is distinct from the language of the notification also which says as follows:-

“(f) the declare for refund shall be filed inside of 1 yr from the date of export of the stated products.”

The above condition described in the notification says that the refund is required to be filed within a single 12 months from the date of EXPORT of the Said Items. Thus, the refund has been linked to the products exported, so the limit is to be seen with respect to the mentioned items/said consignment. As a result, the refund is to be linked to the shipping bill.  If the intention of the government was to website link the refund claim to the availment of a specific service, the language of the notification really should have mentioned some thing like “refund shall be filed within a single year from the date of availment of the service”. Therefore, hunting to the intention of the authorities, the reduce restrict of Rs. 500/- really should be observed in reference of atleast a single shipping bill rather of one particular invoice of service supplier and as this kind of the contention of the Learned Authority is not tenable and is not acceptable.

Johnny says:  I went to the department next day once again with the previously mentioned intent submission but division mentioned: -

Johnny-Johnny go absent,
Arrive yet again another day.
Your refund buy has subsequent more flay: -

Even more unique accusation is currently being raised by way of order of Learned Authority which is handed declaring that Proviso (b) to Paragraph one of the Notification provides that the exemption claimed by the exporter