2011 (7) TMI 553 - AT - Service Tax

Refund claim - Appeal filed beyond one year - Held that - According to Section 11B of Central Excise Act, 1944 made applicable to service tax matters, the refund claim should have been filed within one year since the same has not been filed, the rejection of the claim by the lower authorities cannot be found fault with - Decided against the assessee.

Summary

Issues:
Refund claim timeline adherence under Section 11B of Central Excise Act, 1944.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad, addressed the issue of a refund claim filed beyond the stipulated timeline under Section 11B of the Central Excise Act, 1944. The appellant filed a refund claim for Rs.15,265 on 01.01.09, based on a service tax payment made on 25.10.07. The claim was rejected due to being filed after one year from the payment date. Despite multiple hearing dates, the appellants failed to appear or request an adjournment.

Upon review, it was found that the appellants had made duplicate service tax payments due to the inability to locate relevant challans and documents from 2007. The refund claim for the October 2007 payment was only submitted on 01.01.09, beyond the one-year limit. The appellants argued that Section 83, exempting the one-year timeline for refund applications in case of a mistake of law, should apply. However, the Tribunal emphasized that it must adhere to statutory provisions and cannot override them.

Referring to Section 11B of the Central Excise Act, 1944, applicable to service tax matters, the Tribunal ruled that the refund claim should have been filed within one year from the relevant date. As the claim was not timely filed, the rejection by lower authorities was deemed valid. Consequently, the appeal lacked merit and was rejected by the Tribunal. The judgment underscores the importance of adhering to statutory timelines for refund claims, even in cases of alleged mistakes of law, to maintain legal compliance and uphold the provisions of the law.