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2016 (11) TMI 1440 - AT - Service TaxRefund of service tax - N/N. 41/2007-S.T., dated 6-10-2007 - denial on the ground that appellant was not in possession of the service tax code at the time of applying for the refund - Held that - It is on record that the appellant had already applied for such code number along with the application for refund claim. It is entirely the fault of the Department in not allotting the code within the period of 7 days as is mandatorily required - this cannot be held as a reason against the appellant in rejection the refund claim - refund allowed - appeal allowed - decided in favor of appellant.
Issues:
Claim of rebate of service tax paid under Notification No. 41/2007-S.T. Analysis: The appellant, a merchant exporter of agricultural products, filed a refund claim of service tax paid under Notification No. 41/2007-S.T. The claim was rejected by the Original Authority and the Commissioner (Appeals) solely because the appellant did not possess the service tax code at the time of applying for the refund. The appellant contended that they had applied for the code as required by the notification, but it was not allotted within the mandatory 7-day period due to the Department's delay. It was established that merchant exporters are eligible for rebate under the notification. The authorities rejected the refund claim citing the absence of the service tax code, which the appellant, in fact, had applied for along with the refund claim. The delay in code allotment was solely due to the Department's fault. The Tribunal held that this delay cannot be a valid reason to reject the refund claim. Refund claims must be processed and paid if they meet the conditions specified in the notification. The Tribunal allowed the appeal, emphasizing that the refund should be granted as per the conditions prescribed. In conclusion, the Tribunal ruled in favor of the appellant, emphasizing that the delay in allotting the service tax code by the Department cannot be a ground for rejecting the refund claim. The appellant had fulfilled the necessary requirements as per the notification, and the refund should be processed accordingly. The decision highlights the importance of adherence to procedural requirements and timely processing of refund claims to ensure justice and fairness in tax matters.
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