2004 (7) TMI 588 - AT - Service Tax

Summary

Issues:
1. Rejection of refund claim for excess Service Tax paid on the ground of being time-barred under Section 11B of the Central Excise Act, 1944.

Analysis:
The appeal before the Appellate Tribunal CESTAT, Mumbai stemmed from the Commissioner (Appeals) confirming the rejection of a refund claim made by the appellant concerning excess Service Tax payments. The lower authority rejected the claim as time-barred under Section 11B of the Central Excise Act, 1944.

The facts revealed that the appellant had made excess payments of Rs. 42,500/- and Rs. 39,700/- in July 1998 and September 1998, respectively. The appellant contended that the period for computing the six-month limit should commence from the date of receipt of the assessment order, not from the date of payment. The appellant argued that they were unaware of the correct tax payment procedure and only realized the excess payments upon receiving assessment orders in 1999. Consequently, they filed a refund application within six months from the date of receiving the assessment order, asserting that starting the six-month period from the payment date would result in injustice.

Upon hearing both sides, the Ld. Advocate representing the appellant emphasized that the excess payments were made due to lack of proper guidance initially. The advocate argued that the computation of the six-month period should begin from the date of receipt of the assessment order to prevent injustice. However, the Tribunal found the law to be explicit, requiring refund applications to be made within six months from the payment date under Section 11B of the Central Excise Act. As the claim was not filed within the statutory period, it was deemed ineligible for consideration.

Ultimately, the Tribunal upheld the decision of the Commissioner (Appeals), concluding that the appeal lacked merit and was therefore rejected. The judgment emphasized the importance of adhering to the statutory time limits for refund claims under the Central Excise Act to maintain legal compliance and consistency in such matters.