CANNANORE HANDLOOM EXPORTS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The issue arising herein is with respect to refund of service tax and the question of law is re-framed as follows:

(2.) That the assessee was not liable to pay the tax for the agency commission prior 18.04.2006 is admitted. The assessee-appellant was an exporter of handloom garments, textile and fabrics. They were availing the services of overseas agents for marketing/promotion of their products and procuring export orders. It is the commission granted to such overseas agents that was found to be taxable under 'Business Auxiliary Service'. The Central Board of Excise & Customs vide Annexure-A Circular held that service tax liability on taxable services provided by a non-resident assessee to a recipient in India would arise only with effect from 18.04.2006. The circular is dated 26.09.2011 and the application for refund was filed on 14.08.2012. The appellant also contended that the original order in the case of the assessee was passed on 02.03.2012.

(3.) The learned Counsel for the assessee argued that the application for refund was made within time and within one year of the Circular as also the order in original. The learned Standing Counsel for the Department, however, submits that the assessee had paid the tax for the period in which the refund is sought, without demur. An application for refund has to be made within one year of such payment as per Section 11B of the Central Excise Act.