2015 (10) TMI 1997 - AT - Service Tax

Sanction of refund claim filed beyond period of limitation Appellant contends that payment of service tax was a mistake; the period of limitation would not apply Revenue contends that Tribunal has to work within the provisions of law and cannot extend the period of limitation Held that - Authorities working under Central Excise law are bound by provision of limitation prescribed in terms of Section 11B of the Central Excise Act Limitation period cannot be extended in any circumstances including the payments made by an error of law or under mistake. Found no merits in the appeal and rejected Decided against the assessee.

Summary

Issues:
Refund claim of service tax filed after the limitation period.

Analysis:
The case involved a refund claim of service tax filed by the appellant after the prescribed limitation period. The appellant, registered under works contract service, filed a refund claim of &8377; 1,44,200/- due to the payment of service tax, which was not required, made between June 2008 to April 2009. The original adjudicating authority sanctioned a part of the claim but rejected &8377; 1,03,000/- as time-barred. The issue revolved around whether a refund claim filed after the limitation period can be sanctioned without considering the limitation aspect. The appellant argued that the period of limitation should not apply due to the mistake in paying the service tax. However, the Revenue contended that the Tribunal cannot extend the limitation period as per the provisions of the law and cited relevant case laws to support their stance.

The Tribunal emphasized that authorities under the Central Excise law are bound by the provisions, including limitation under Section 11B of the Central Excise Act. It was noted that the limitation period for claiming a refund cannot be extended, even in cases of payments made in error or mistake. The Tribunal referred to previous judgments, including decisions by the Hon'ble Supreme Court, to support the position that statutory time limits apply to refund claims, and these limits cannot be extended by any authority. Citing established legal principles, the Tribunal concluded that the limitation period for claiming a refund is absolute, regardless of the circumstances leading to the payment of service tax in error. Consequently, the Tribunal found no merit in the appeal and rejected it accordingly.