2014 (6) TMI 660 - AT - Service Tax

Admissibility of refund claim - period of limitation - Notification No. 41/2007-ST dated 6.10.2007 - As per para 2(e) of ibid notification the claim for refund was required to be filed on a quarterly basis within 180 days from the end of the relevant quarter during which the said goods had been exported. - Held that - Commissioner (Appeals) has examined the matter in depth. He has rightly distinguished the applicability of section 11B and applicability of notification No.41/2007-ST. Concept that exemption notification has to be strictly construed has been appreciated. - no reason to interfere in the findings - Decided against assessee.

Summary

Issues:
Admissibility of refund claim on service tax under Notification No.41/2007-ST due to time limit for filing the claim.

Analysis:
1. The appellant, engaged in exporting hand tools, filed a refund claim of Rs.52,711 under Notification No.41/2007-ST but faced rejection due to being hit by the bar of limitation.

2. The main issue before the Tribunal was the admissibility of the refund claim under the said notification since it was not filed within the time limit prescribed in para 2(e) of the notification.

3. The appellant argued that the provisions of section 11B of the Central Excise Act, 1944, should apply to service tax, allowing a one-year period for claiming a refund. However, the Commissioner (Appeals) held that the time limitation provided in Notification No.41/2007-ST alone was applicable to the case, not section 11B.

4. The appellant's counsel referred to section 83 of the Finance Act, 2003, which makes certain sections of the Central Excise Act, including section 11B, applicable to service tax. Therefore, they contended that the one-year limitation period should apply to their refund claim under Notification No.41/2007-ST.

5. The Departmental Representative supported the Commissioner (Appeals) findings, emphasizing that the exemption under the notification would be available through a refund of service tax paid, with a specific time limit of six months for filing the claim.

6. The notification clearly specified a time limit of sixty days for filing refund claims, which was later extended to one hundred eighty days (six months) through an amendment in Notification No.32/2008-ST.

7. After considering the arguments and examining the records, the Tribunal found that none of the judgments cited covered the present situation. The Commissioner (Appeals) had correctly distinguished the applicability of section 11B and the notification, emphasizing the strict construction of exemption notifications.

8. Consequently, the Tribunal upheld the findings of the Commissioner (Appeals) and dismissed the appeal filed by the appellant on the grounds that the time limit specified in Notification No.41/2007-ST was the applicable criterion for filing refund claims, and the provisions of section 11B did not apply in this case.

This detailed analysis of the judgment highlights the key legal issues, arguments presented by both parties, relevant legal provisions, and the final decision rendered by the Tribunal.