Transportation of empty containers from CFS to factory of exporter held to be "In relation to export goods" and thus eligible for refund under Notification NO.41/2007.

Commissioner of Central Excise, Customs & Service Tax, 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 services are

not for transportation of goods for export.

Since the services were utilised by them for transportation of goods for exports, it was contended by the assessee that no service tax was payable by them and relied upon the decision of.

Held:

Relying on CCE, Madurai vs. Tata Coffee Ltd. [2011 (21) S.T.R. 54 Tri- Chennai], 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.