2016 (11) TMI 491 - AT - Service Tax

Refund - service tax paid on exports - N/N. 41/2007-ST - time bar - Held that - the refund will have to be held as filed within time in respect of those exports for which refund stands claimed in the cases where the service tax involved has been paid within a period of sixty days prior to the date of filing of the refund claim i.e. 12.02.2009. Accordingly we remand the matter to the original authority to re-decide the refund claims.

Summary

Issues:
Refund claim for service tax time-barred under Notification No.41/2007-ST - Whether claim filed within the prescribed time limit - Interpretation of para 2(e) of the Notification - Applicability of case laws cited by the appellant - Right to claim refund accrual - Precedents on time limits for refund claims under similar notifications.

Analysis:

The case involved an appeal against the rejection of a refund claim for service tax by the Commissioner (Appeals) related to the export of goods, specifically galvanized steel sheet, plain sheet, and coils. The appellant's claim was for service tax amounting to ?2,19,617 for the period October to December 2008, with a rejected portion for the quarter ending June 2008 deemed time-barred. The appellant argued that the claim was filed within time, citing the payment of service tax on GTA services during December 2008 and January 2009, which they contended was a prerequisite for claiming the refund.

The appellant relied on case laws such as CCEST, Kanpur Vs. Pacific Leather Finishers and Sony India Pvt. Ltd. Vs. CC, New Delhi to support their argument that the right to claim a refund accrues only after the payment of service tax. Conversely, the Departmental Representative supported the rejection, citing Notification No.41/2007-ST, which mandates filing refund claims within 60 days from the end of the relevant quarter of export. The Departmental Representative referred to cases like Midex Global Pvt. Ltd. Vs. CCE, Indore to emphasize strict adherence to the prescribed time limits.

The Tribunal analyzed the provisions of para 2(e) of the Notification, which sets the time limit for filing refund claims as 60 days from the end of the quarter in which goods were exported. The Tribunal considered the appellant's argument that the right to claim a refund crystallizes only upon the payment of service tax, aligning with the decision in Sony India Pvt. Ltd. Vs. CC, New Delhi. Notably, the Tribunal found that the appellant's claim, where service tax was paid within 60 days before filing the claim, should be considered within time.

Ultimately, the Tribunal remanded the matter to the original authority for re-decision based on the observations made, emphasizing the importance of the timing of service tax payment in determining the validity of refund claims under Notification No.41/2007-ST. The judgment highlighted the significance of the right to claim a refund and the adherence to prescribed time limits, providing clarity on the interpretation of relevant provisions and case laws in similar contexts.