2009 (12) TMI 539 - AT - Service Tax

Refund service tax paid in relation to exported goods - Board permits the refund relating to quarter ending March, 2008 to June, 2008 can be filed till 31-12-08 - quarters referred treated as quarters ending March, 2008 and quarters ending June, 2008 - claim is within the time limit prescribed - remand the matter to the original authority

Summary

Issues:
1. Time-barred refund claim for Service tax paid in relation to exported goods.
2. Interpretation of Circular of CBEC regarding the time limit for filing refund claims.

Issue 1: Time-barred refund claim for Service tax paid in relation to exported goods:
The appellant filed refund claims for Service tax paid on exported goods for the periods August 2007 to December 2007 and January 2008 to March 2008. The original authority rejected both claims as time-barred, a decision upheld by the Commissioner (Appeals). The appellant conceded that the claim for August 2007 to December 2007 was indeed time-barred. However, the claim for January 2008 to March 2008 was filed within the prescribed time limit. The appellant relied on a Circular of CBEC dated 12-3-09, allowing claims for the quarter ending March 2008 to be filed by 31-12-08. The Tribunal found that the claim for the quarter ending March 2008, filed on 2-12-08, was within the time limit as per the Circular. The Tribunal held that the lower authorities had rejected the claim solely on the grounds of being time-barred without considering the merits. Consequently, the Tribunal set aside the lower authorities' orders and remanded the matter to the original authority for reconsideration after granting a reasonable opportunity of hearing to the appellant.

Issue 2: Interpretation of Circular of CBEC regarding the time limit for filing refund claims:
The Tribunal carefully considered the submissions of both parties regarding the Circular of CBEC dated 12-3-09. The Circular allowed refund claims for the quarter ending March 2008 to be filed by 31-12-08. The Tribunal interpreted the quarters mentioned in the Circular as ending in March 2008 and June 2008. As the claim for the quarter ending March 2008 was filed on 2-12-08, the Tribunal determined that it was within the prescribed time limit. The Tribunal emphasized that the lower authorities had failed to assess the merits of the claim and had solely rejected it based on being time-barred. Therefore, the Tribunal rejected one appeal and allowed the other by remanding the matter to the original authority for a fresh consideration of the claim relating to the quarter ending March 2008, ensuring a fair hearing for the appellant.

This judgment highlights the importance of correctly interpreting circulars and ensuring that refund claims are not dismissed solely on procedural grounds without assessing their merits.