HEG Ltd. v. Commr. of Cus., CE & ST

FINANCE ACT, 1994

--Benefit of notification--Exemption from service taxBenefit of Notification was denied on the ground that assessee had not filed the return in Form EXP-4 in due time----Though one copy of such shipping bill remains with the exporter which could have been annexed with EXP-4 to be filed within time. But, delay of 15 days then prescribed time limit was observed to be insignificant to deny the benefit of the notification, especially when all other conditions of the notification were duly complied with by assessee. Thus, appeal of assessee was allowed.--Assessees were engaged in business of export of goods and were providing/receiving various taxable services such as 'Business Auxiliary Services', 'Goods Transport Agency Service', etc. Assessee with an intention to avail exemption from service tax under Notification No. 18/2009-ST, which was superseded by Notification No. 42/2012-ST. However, the benefit of Notification was denied to assessee on the ground that assessee had not filed the return in Form EXP-4 in due time. Held: Mere procedural lapse which admittedly was on account of non-availability of shipping bills and that too, due to delay on the part of customs could not be the ground to deny the substantial benefit of the Notification. Though one copy of such shipping bill remains with the exporter which could have been annexed with EXP-4 to be filed within time. But delay of 15 days then prescribed time limit was observed to be insignificant to deny the benefit of the notification, especially when all other conditions of the notification were duly complied with by assessee. Thus, delay did not appear to be arising out of mala fide intent and appeal of assessee was allowed.