2019 (2) TMI 1844 - AT - Service Tax

Refund of CENVAT Credit - export of services - time limitation - rejection of refund on the ground that the refund applications were beyond a period of limitation from the date of filing of ST3 returns - whether refund claim filed by the respondent is within period of one year from the date of filing of revised returns has to be considered as hit by limitation or otherwise? - HELD THAT - It can be seen from the findings of First Appellate Authority that they are in consonance with the law, as Notification No. 12/2014 CE (NT) clause 2 specifically talks about the refund claim should be filed within one year from the due date of filing of half yearly return. As can be seen from the provisions of Rule 7B, the due date of filing the service tax returns has been extended by 90 days if there is mistake or ommission. In the case, undisputedly due date has to be considered from the date of filing of revised returns as correctly held by the First Appellate Authority. The impugned order to the extent it is challenged in this appeal is unacceptable and liable to be rejected - Appeal dismissed.

Summary

Issues:
1. Refund application under Rule 5B of Cenvat Credit Rules beyond limitation period.
2. Interpretation of Notification No. 12/2014 CE (NT) regarding refund claims for unutilized CENVAT Credit.
3. Validity of refund claims based on filing of revised ST3 returns.
4. Applicability of Rule 7B in determining the limitation period for refund claims.

Analysis:
1. The appeal challenged the rejection of refund applications filed by the respondent beyond the limitation period set by the adjudicating authority. The First Appellate Authority allowed the refund claims, leading to the revenue's grievance.

2. The key contention revolved around the interpretation of Notification No. 12/2014 CE (NT) concerning the timeline for claiming refunds of unutilized CENVAT Credit. The revenue argued that the refund claims should align with the filing of service tax returns as per Rule 7, emphasizing the importance of the due date for filing returns.

3. The First Appellate Authority's analysis delved into the relevance of filing revised ST3 returns within 90 days, as per Rule 7B, and its impact on the limitation period for refund claims. By considering the date of filing revised returns as the new due date, the Authority concluded that the refund claims for a specific period were within the stipulated one year, thus warranting approval.

4. The judgment highlighted the significance of Rule 7B in extending the due date for filing service tax returns in case of errors or omissions. By correctly assessing the due date from the filing of revised returns, the First Appellate Authority's decision aligned with the legal framework, as reflected in Notification No. 12/2014 CE (NT) and Rule 7B, ensuring the proper consideration of refund claims within the prescribed timeline.

This detailed analysis of the judgment addresses the issues raised in the appeal, emphasizing the legal interpretations and procedural aspects crucial to the resolution of the refund claims under scrutiny.