2018 (4) TMI 1170 - AT - Service Tax

Refund of CENVAT credit - time limitation - case of Revenue is that the claim for refund of CENVAT credit should be filed within one year from the date of invoice - Held that - In view of the settled law that the period of limitation would be computed from the last date of the quarter to which the claim for refund pertains, the appeal of Revenue does not find sustenance and is accordingly dismissed - decided against Revenue.

Summary

Issues involved: Appeal against rejection of refund claim based on limitation period calculation.

Analysis:
1. The Revenue filed an appeal against the order-in-appeal allowing the refund claim of the respondent, M/S Tata Consultancy Services Ltd, which was initially rejected on the ground of the limitation period. The Revenue argued that the claim for refund of CENVAT credit should be filed within one year from the date of invoice, citing a previous Tribunal decision in Affinity Express India Pvt Ltd v. Commissioner of Central Excise. However, the original authority had calculated the limitation period from the date of the quarter to which the claim pertained.

2. The Tribunal clarified that, based on settled law, the period of limitation for refund claims should be computed from the last date of the quarter to which the claim relates. Therefore, the appeal by the Revenue was dismissed as it did not align with this principle. Consequently, the stay application filed by the Revenue was deemed in fructuous and dismissed, along with the cross-objection filed by the respondent.

3. The judgment emphasized the importance of correctly determining the limitation period for refund claims, highlighting the significance of computing it from the last date of the relevant quarter. By adhering to this principle, the Tribunal ensured consistency in the application of the law regarding refund claims of CENVAT credit, ultimately leading to the dismissal of the Revenue's appeal and the related applications.