2018 (4) TMI 1246 - AT - Service Tax

Refund of service tax paid - denial on the ground of time limitation - refund claim filed on 7th March 2016 for the services exported by him for the quarter January 2015 to March 2015 - Section 11B of CEA - Held that - Larger Bench of the Tribunal in the case of CCE & ST, Bengaluru Service Tax-I Vs Span Infotech India Pvt Ltd 2018 (2) TMI 946 - CESTAT BANGALORE has settled the law wherein it is held that for the refund under Rule-5 of CENVAT Credit Rules 2004, relevant date for limitation has to be from end of the quarter in which FIRC is received - refund is not time barred - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Rejection of refund claim on grounds of limitation.

Analysis:
The appeal before the Appellate Tribunal CESTAT Hyderabad was centered around the rejection of a refund claim filed by the appellant on the basis of being hit by limitation. The appellant, an exporter of services, had claimed CENVAT credit of service tax paid on input services and filed a refund claim for services exported during a specific quarter. The Revenue contended that since the invoices for the export of services were raised in a particular month, the time period for refund of CENVAT credit should be calculated from the date of the invoices raised for export services. Consequently, the refund claims were rejected based on this interpretation.

Upon reviewing the records, the Tribunal noted that the issue at hand had already been settled by a Larger Bench in a previous case. The Tribunal referred to the decision in the case of CCE & ST, Bengaluru Service Tax-I Vs Span Infotech India Pvt Ltd, where it was established that for the refund under Rule-5 of CENVAT Credit Rules 2004, the relevant date for limitation should be considered from the end of the quarter in which the FIRC (Foreign Inward Remittance Certificate) is received. Given that the law on this matter had been conclusively clarified in favor of the appellant by the aforementioned decision, the impugned order rejecting the refund claim was set aside, and the appeal was allowed with consequential relief.

In conclusion, the Tribunal's decision in this case provided clarity on the calculation of limitation for refund claims under the CENVAT Credit Rules, aligning with the precedent set by the Larger Bench decision and ultimately ruling in favor of the appellant by overturning the initial rejection of the refund claim.