2015 (5) TMI 841 - AT - Service Tax

Denial of refund claim - Bar of limitation - Determination of relevant date for filing refund claim - Held that - Regarding the relevant date for deciding the refund claim on limitation the issue is no more res-integra as the Hon ble Delhi High Court in the case of Arya Exports and Industries (2005 (4) TMI 90 - HIGH COURT OF DELHI) has decided the issue and held that date of filing claim should be considered as relevant date even if the same is not filed in prescribed form and the documents are not submitted alongwith the refund application. - The initial refund claim having been filed well within time the same is required to be considered within limitation. Accordingly I set aside the impugned order and remand the matter to Commissioner (Appeals) for decision on merits. - Decided in favour of assessee.

Summary

Issues:
- Refund claim time-barred issue
- Relevant date for deciding the refund claim on limitation
- Unjust enrichment examination requirement

Refund Claim Time-Barred Issue:
The appellant filed an appeal against OIA No. PJ-367TO371-VDR-II-2012, where the first appellate authority upheld the Order-in-Original on a time-barred issue regarding a refund claim. The appellant argued that the refund claim was originally submitted on 30.11.2011, returned for additional documents, and resubmitted on 25.01.2012. The adjudicating authority deemed the claim time-barred after the resubmission. The appellant contended that the limitation period should start from the original submission date. The appellant cited case laws supporting their argument. The Revenue argued that the claim should be considered filed only when all original documents are submitted. The Tribunal referred to the Hon'ble Delhi High Court's decision in a similar case and a previous Tribunal order, both favoring the appellant's position. The Tribunal set aside the time-barred issue and remanded the matter for a decision on merits.

Relevant Date for Deciding the Refund Claim on Limitation:
The Tribunal, after hearing both sides and examining the case records, addressed the issue of the relevant date for deciding the refund claim on limitation. Citing the Hon'ble Delhi High Court's decision and a previous Tribunal order, the Tribunal established that the date of filing the claim should be considered the relevant date, even if not in the prescribed form or with all documents. The Tribunal emphasized that the law on this issue is settled and requires the initial filing date to be within the limitation period. Consequently, the Tribunal set aside the impugned order and remanded the matter for a decision on merits, following the settled legal proposition.

Unjust Enrichment Examination Requirement:
Regarding the applicability of unjust enrichment, the Tribunal remanded the matter back to the adjudicating authority for examination in the remand proceedings. The Tribunal directed the adjudicating authority to provide the appellant with a personal hearing before deciding on the refund claim. The Tribunal allowed the appeal on the time-barred issue and instructed the adjudicating authority to make a decision within one month from the date of the order.

In conclusion, the Tribunal's judgment addressed the issues of the time-barred refund claim, the relevant date for deciding on limitation, and the requirement to examine unjust enrichment. The decision favored the appellant, setting aside the time-barred issue and remanding the matter for a decision on merits, while also instructing the adjudicating authority to consider unjust enrichment and provide a personal hearing to the appellant.