2017 (9) TMI 714 - AT - Service Tax

Refund claim - N/N. 41/2007-ST dt. 06.10.2007 - rejection on the ground of time bar - Held that - appellants refund claim for the quarter ended December 2007, is filed on 19.09.2008. The said refund claim, by any stretch of imagination, is beyond the period of sixty days as provided under notification No.41/2007-ST, dt. 06.10.2007 - this belated filing of refund claim for the quarter ended December 2007 has correctly been rejected by lower authorities. As regards second refund claim for the quarter ended June 2008, the said refund claim is undisputedly filed on 10.09.2008. Time limit prescribed under N/N. 41/2007-ST dt. 06.10.200 was amended by N/N. 32/2008, dt. 18.11.2008 wherein the time limit was extended for filing the refund claims from sixty days to six months - the refund claim for the services received and used during the quarter was filed on 10.09.2008 well within the time as extended under N/N. 32/2008 and as clarified by Board Circular dated 12.03.2009 - the refund claim for the quarter ended June 2008 needs to be granted to the appellant. Appeal allowed - decided partly in favor of appellant.

Summary

Issues:
1. Refund claim filed by the appellant for service tax paid on specified services for the export of goods.
2. Rejection of refund claim by lower authorities on the ground of being time-barred.
3. Interpretation of notification regarding the time limit for filing refund claims.

Analysis:
The appeal before the Appellate Tribunal CESTAT Hyderabad concerned a refund claim filed by the appellant for service tax paid on specified services utilized for the export of goods. The issue at hand was the rejection of the refund claim by the lower authorities on the basis of being time-barred as per Notification No.41/2007-ST dated 06.10.2007. The appellant had filed refund claims for the quarters ended December 2007 and June 2008 on specific dates. The Commissioner/AR for the respondent argued that the refund claims were filed beyond the prescribed time limit of 60 days from the end of the relevant quarters, citing the judgment of the Hon'ble High Court of Madras in a similar case.

Upon careful consideration of the submissions and records, the Tribunal found that the refund claim for the quarter ended December 2007 was indeed filed beyond the stipulated 60-day period, leading to its rejection by the lower authorities. This decision was supported by a judgment of the Tribunal in a related case. However, regarding the refund claim for the quarter ended June 2008, the Tribunal noted that it was filed within the extended time limit as per notification No.32/2008 dated 18.11.2008, which extended the filing period to six months. The Tribunal further referred to a circular issued by the Central Board of Excise & Customs clarifying the extended time limit for filing refund claims. As the appellant's refund claim for the quarter ended June 2008 was within the revised limitation period, the Tribunal ruled in favor of granting the refund for that quarter.

In conclusion, the appeal was partly allowed and partly rejected, with the refund claim for the quarter ended June 2008 being granted to the appellant based on the extended time limit provided in the notification and circular. The judgment was pronounced in open court on 31/08/2017 by Mr. M.V. Ravindran, Member (Judicial) of the Appellate Tribunal CESTAT Hyderabad.