2018 (5) TMI 167 - AT - Service Tax

Refund/rebate of service tax paid - N/N. 41/2012-ST - rejection on the ground of time bar - whether the limitation of time imposed by the notification for claiming the refund of Service Tax on inputs which went into export of goods can be altered by reckoning the date on which the appellant received the invoices instead of the date of Let Export Order as laid down in the notification? Held that - the Notification is a subordinate legislation made by the Government in exercise of the powers delegated by the Parliament. This power is given to the Government and not to the officers or to this Tribunal. Hence, the provisions of this notification including the time limit and the date of reckoning the time limit cannot be modified by the officers or by this Tribunal. It has been laid down in a catena of judgements by the Hon ble Supreme Court and High Courts that a statutory time limit has to be adhered to and the Courts cannot modify them. The appellant cannot be granted refund of Service Tax paid on services used in the goods exported by them beyond one year from the date of LEO as specified in the N/N. 41/2012-ST - appeal dismissed - decided against appellant.

Summary

Issues:
Refund claim of service tax paid on export of Indian milling wheat under Notification No. 41/2012-ST - Time limit for filing refund claim - Date of export for claiming rebate - Appeal against rejection of refund claim as time-barred.

Analysis:
1. The appellant, registered for Business Auxiliary Services, filed a refund claim for service tax paid on services used for export of goods under Notification No. 41/2012-ST. The claim was rejected by the Assistant Commissioner as time-barred, upheld by Commissioner (Appeals), leading to this appeal.

2. The appellant argued that the refund claim should be based on the date of invoice from the service provider, not the date of export as per the notification. Citing case laws, the appellant sought flexibility in the time limit for claiming the refund.

3. The Departmental Representative contended that the notification clearly specifies the time limit for claiming the rebate based on the date of Let Export Order (LEO). Various case laws were cited to support the strict adherence to the time limit as prescribed in the notification.

4. The Tribunal examined the arguments and records, emphasizing that the legal provision for the refund claim is Section 94A of the Finance Act, 1994 read with Notification No. 41/2012-ST, which mandates a one-year time limit from the date of LEO for claiming the refund.

5. The key issue was whether the time limit set by the notification can be altered by considering the date of invoice receipt instead of the LEO date. The Tribunal clarified that subordinate legislation, like the notification, cannot be modified by officers or the Tribunal, citing legal precedents that uphold statutory time limits.

6. Referring to judgments, the Tribunal highlighted that the time limit for claiming a refund is crucial and cannot be extended beyond what is specified in the statute or notification. The Tribunal concluded that the appellant's argument for a refund beyond the stipulated one-year period from LEO was not valid.

7. The Tribunal dismissed the appeal, emphasizing that the notification's time limit for claiming a refund is binding and cannot be altered by considering other dates like the invoice receipt date. The decision was based on the legal principle that statutory time limits are sacrosanct and must be strictly adhered to.

This detailed analysis of the judgment highlights the interpretation of the time limit for filing a refund claim under Notification No. 41/2012-ST and the legal principles governing such claims, ultimately leading to the dismissal of the appeal due to the appellant's failure to adhere to the prescribed time limit.