DGFT Clarification regarding Service Tax Refund

By Vijay Kumar

In the Policy Circular No. 1 dated 11.4.08, DGFT had stated that the Department of Revenue has clarified that, (c) Clearing and Forwarding (C&F) Agency Service is not leviable to Service Tax;

Now DGFT has clarified that Department of Revenue have now issued Notification No. 33 dated 7.12.2008 allowing refund of Service Tax paid on the services provided by a Clearing and Forwarding Agent in relation to Export Goods.

So the clarification given by the DGFT in April 2008 is withdrawn, because the clarification given by Revenue was wrong? CBEC had issued the Notification on 7th December - a Sunday and on 8th December the DGFT is ready with its clarification correcting its earlier clarification - Good work DGFT.

DGFT Policy Circular No. 47 (RE-08)/2004-2009 Dated: December 8, 2008