2017 (9) TMI 1646 - AT - Central Excise

Refund of accumulated CENVAT credit - time limitation - relevant date - Held that - As an exporter of goods, the appellant is entitled to claim refund only once every quarter - Law is now well-settled that the relevant date cannot be prior to the last possible date of exports pertaining to the quarter for which refund is claimed - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Time limitation for refund application under CENVAT Credit Rules, 2004.
2. Interpretation of "relevant date" for claiming refund.
3. Entitlement of exporter to claim refund once every quarter.

Analysis:
1. The main issue in this case pertains to the time limitation for a refund application under the CENVAT Credit Rules, 2004. The appellant, a company engaged in the export of goods, applied for a refund of CENVAT credit accumulated in relation to inputs/input services used in the manufacture of goods exported between April 2012 and June 2012. The application was submitted on 13th May 2013. However, the Revenue contended that the application was time-barred as per notification no. 27/2012-CE (NT) dated 18th June 2012, which required the application to be made within one year of the "relevant date," calculated from the date of the first export on 7th April 2012.

2. The first appellate authority ruled that the claim was not barred by time limitation and directed the consideration of the claim on merits. The authority emphasized that the appellant, as an exporter, is entitled to file claims once every quarter, with the opportunity for exports existing until the last date of the quarter. It was argued that adopting any other date as the "relevant date" would contradict the period specified in section 11B of the Central Excise Act, 1944.

3. The Tribunal, after considering the arguments, concluded that the appellant, being an exporter, is entitled to claim a refund only once every quarter. It was established that the "relevant date" for claiming a refund cannot precede the last possible date of exports within the quarter for which the refund is sought. Consequently, the Tribunal upheld the decision of the first appellate authority, dismissing the appeal and disposing of the cross-objections.

In summary, the judgment clarifies the time limitation for refund applications under the CENVAT Credit Rules, 2004, emphasizes the interpretation of the "relevant date" for claiming refunds, and confirms the entitlement of exporters to claim refunds once every quarter based on the last possible date of exports within the quarter.