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2019 (11) TMI 567 - AT - Service TaxRefund of service tax - time limitation - export of services - commission paid to overseas agents - claim was rejected on the ground that the claim pertaining to the period October 2008 to December 2008 was filed on 28.05.2009 i.e. within the period of six months as prescribed in notification however, without the duty paying challans which was dated 11.08.2009 - HELD THAT - In the appellant s own case, the issue has been decided by the Tribunal in M/S SOPARIWALA EXPORTS PVT LTD VERSUS CCE ST- VADODARA-I 2018 (5) TMI 1460 - CESTAT AHMEDABAD where it was held that the refund claim cannot be rejected on the ground of time bar, since, they have complied with the condition of filing the refund claim within 6 months from the date of export of goods for the relevant quarter i.e. from July, 2008 to Sept., 2008. Refund allowed - appeal allowed - decided in favor of appellant.
Issues:
- Denial of refund under Notification No. 41/2007-ST dated 06.10.2007 due to the filing of the claim beyond the prescribed time limit of six months. - Discrepancy in the submission date of the refund claim and the duty paying challans. - Application of reverse charge mechanism for service tax payment on overseas commission. - Interpretation of the time limit for filing refund claims under the relevant notification. Issue 1: Denial of refund under Notification No. 41/2007-ST The appellant, M/s. Sopariwala Exports Pvt. Limited, filed an appeal against the denial of a refund under Notification No. 41/2007-ST dated 06.10.2007. The appellant had availed services for export purposes and filed a refund claim within the prescribed time limit. However, the claim was rejected on the grounds of not filing the complete claim within six months as required by the notification. The rejection was based on the submission date of duty paying challans, which was beyond the stipulated time frame. The appellant argued that the quantification of commission payable to the foreign service provider took time, leading to a delay in the service tax payment on a reverse charge basis. Issue 2: Discrepancy in submission dates The Tribunal noted that in a previous order concerning the appellant's case, the Tribunal had allowed a similar refund claim. The Tribunal in the previous order emphasized that the refund claim was filed within the stipulated six-month period from the date of exported goods, even though the payment of service tax on a reverse charge mechanism was made at a later date. The Tribunal highlighted that the relevant clause required the refund claim to be filed on a quarterly basis within six months from the end of the relevant quarter when the goods were exported. The Tribunal concluded that the refund claim could not be rejected based on the time bar, as the appellant had met the condition of filing the claim within the specified time frame. Consequently, the impugned order denying the refund was set aside, and the appeal was allowed based on the precedent set by the previous decision. Issue 3: Application of reverse charge mechanism The appellant's argument regarding the quantification of commission payable to the foreign service provider leading to a delay in service tax payment on a reverse charge basis was considered by the Tribunal. The Tribunal, in line with the previous decision, reiterated that the refund claim's validity was not contingent on the exact date of service tax payment but on the timely filing of the claim within the prescribed period. The Tribunal emphasized that the exemption under Notification No. 41/2007-S.T. applied to taxable services used for exporting goods, and as long as the refund claim was filed within the specified time frame, it could not be rejected solely based on the payment date under the reverse charge mechanism. In conclusion, the Tribunal allowed the appeal, granting consequential relief to the appellant based on the interpretation of the time limit for filing refund claims under Notification No. 41/2007-ST and the application of the reverse charge mechanism for service tax payment on overseas commission.
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