Service Tax Refund to Exporters through Customs EDI
CBEC in Circular No. dated 16.12.2011 had stated, "Government has proposed to introduce a simplified scheme for electronic refund of service tax to exporters, on the lines of duty drawback. With the introduction of this new scheme, exporters now have a choice: either they can opt for electronic refund through ICES system, which is based on the ‘schedule of rates' or they can opt for refund on the basis of documents, by approaching the Central Excise/Service Tax formations."
Now, this scheme has been notified. The much-maligned Notification No. dated 07.07.2009 has been superseded and a new notification No. dated 30.12.2011 has been issued.
The new notification retains almost all of the Notification No. as far as refund through the Central Excise/Service Tax officers with documents, are concerned. A new option has been given to the exporters to claim the refund on the lines of duty drawback as a percentage of the FOB value of the export goods. This continues to be an exemption notification and the exemption will work through a system of refunds.
(a) The exemption shall be provided by way of refund of service tax paid on the specified services used for export of the said goods;
(b) The exemption shall be claimed either on the basis of rates specified in the Schedule of rates annexed to the notification, or on the basis of documents;
(c) No CENVAT credit of service tax paid on the specified services used for export of the said goods has been taken under the CENVAT Credit Rules, 2004;
(d) The exemption shall not be claimed by a Unit or Developer of a Special Economic Zone; [What a way to draft a notification! Why can't they say SEZ units are not eligible, instead of saying they shall not claim?]
For more details, please see Service Tax Refund to Exporters through Customs EDI Notified
Notification No. , Dated : December 30, 2011,