CESTAT says Export Rebate Route Must Be Elected at Export

CESTAT Chennai dismissed twelve appeals filed by RBA Exports concerning partial rejection of service tax rebate claims under Notification No. 41/2012-ST. It held that the document-based rebate under paragraph 3 is available only where the actual rebate exceeds the Schedule-based rebate under paragraph 2 by at least 20%. An exporter that consciously elects paragraph 3 cannot subsequently claim the Schedule rate on shipping bills where the documentary claim falls short. The Tribunal also held that the alternative paragraph 2 claim could not be granted in these proceedings without the requisite declaration in the shipping bills.