Transportation of empty containers from CFS to factory of exporter held to be “in relation of exporter held to be “in relation to export goods” and thus eligible for refund

 

CCC&E, Visakhapatnam vs. R.A.K. Ceramics India Pvt. Ltd. 2013 (30) STR 609 (Tri-Bang.)

Facts:

A manufacturer of ceramic tiles cleared such goods for export as well as for home consumption. It incurred freight for transport of goods by road which also included transportation of empty containers from CFS to the respondent’s factory and claimed refund vide Notification No. 41/2007-S.T against freight towards export. After allowing the refund claim, the amount representing transportation of empty containers from CFS to the factory was demanded back treating it as erroneous and contending that such service are not for transportation of goods for export. Since the service were utilized by them for transportation of goods for export, it was contended by the assessee that on service tax was payable by them and relied upon the decision of CCE, Madhuri vs. Tata Coffee Ltd. [2011 (21) S.T.R. 546 Tri- Chennai].

Held:

Relying on Tata Coffee Ltd., it was held that the expression used in Notification No. 41/2007 “in relation to transport of export goods” was wide enough to cover event of transport of empty containers from the yard to the factory for stuffing the goods.