By TIOL News Service

MUMBAI, MAY 30, 2017: NOTIFICATION 18/2009-ST granted exemption from service tax in respect of services for transport of goods by road or services provided by a commission agent located outside India, which have been used for export of goods.

The issue in the present appeal is whether fulfillment of conditions prescribed in the Notification No. 18/2009-ST belatedly will entitle the appellant to benefit of the said exemption notification.

Inasmuch as there had been a default in fulfilling the procedural conditions prescribed in column No. 4 of the above notification viz. certain procedures require the appellant to submit respective information in a prescribed form as well as file the return in a prescribed form within the prescribed limit.

Having denied the benefit by the lower authorities on account of the above alleged misfeasance, the appellant is before the CESTAT.

The Bench observed that the conditions referred in the notification are regulatory in nature and not mandatory to avail the exemption.

The CESTAT added –

"If the procedure prescribed is not fulfilled there would be no consequence of denial of the benefit of the notification. It is stated that taxing the goods denying the notification benefit shall make the export goods non competitive in the global trade, which is contrary to basic principle of WTO. Accordingly, looking to the gravity of the conditions as well as the WTO agreement, it would not be reasonable to dismiss the appeal."

(See 2017-TIOL-1796-CESTAT-MUM)