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2017 (1) TMI 1415 - AT - Service TaxRefund of excess amount paid by way of service tax - denial on account of time limitation - whether time limits are applicable for grant of refund of service tax? - Held that - Section 11B of the Central Excise Act, which has been made applicable to refund of service tax clearly states that the refund claim needs to be filed within a period of one year from the relevant date. The excess amount has been paid by the appellant by way of service tax, and hence can be refunded only subject to provision of Section 11B which governs ground of refund of any service tax in this statute - appeal dismissed - decided against appellant.
Issues:
Claim for refund of service tax paid twice, time bar under section 11B for filing refund claim. Analysis: The appellant filed an appeal against the original order dated 10.11.2009 regarding the payment of service tax for sale of space or time for advertisement services. The appellant ended up paying the service tax amount of ?14,92,703/- twice due to an error in realization of the value of services in January 2007. Consequently, they filed a claim for refund of this amount on 25.07.2007. The authorities held that a part of the refund claim amounting to ?4,23,454/- was time-barred as it was filed beyond the one-year period specified under section 11B for the claim of refund of duty. The appellant contended that the amount should be refunded without considering the time bar since it was paid as service tax when it was not required to be paid. The Counsel cited various decisions of the Supreme Court and Tribunal to support their argument that the bar of limitation should not apply when the amount paid was not required to be paid. The Departmental Representative, on the other hand, supported the impugned order, stating that any refund must satisfy the time limit specified under section 11B. The main question in this case was whether time limits are applicable for the grant of refund of service tax. The Tribunal noted that the portion of the refund claim rejected due to being time-barred pertained to an excess amount of service tax paid more than one year prior to the filing of the refund claim. Section 11B of the Central Excise Act, applicable to refund of service tax, clearly mandates that the refund claim must be filed within one year from the relevant date. The excess amount paid by the appellant as service tax can only be refunded subject to the provisions of Section 11B governing the refund of any service tax. Despite the Counsel's argument that the amount paid was not required to be paid, relying on various judgments, the Tribunal emphasized that it must function within the statutory framework. The Tribunal concluded that the part of the refund filed beyond the time limit specified under section 11B was rightly rejected as time-barred by the lower authorities. In light of the above analysis, the Tribunal upheld the impugned order and dismissed the appeal.
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