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2020 (3) TMI 852 - AT - Service TaxRefund of service tax - time limitation - principles of unjust enrichment - refund denied on the ground that appellant did not produce evidence or documentary proof that the appellant has not passed the incidence of duty to its customers - Section 11B of the Central Excise Act, 1944 - HELD THAT - Larger Bench of the Tribunal in the case of M/S VEER OVERSEAS LTD. VERSUS CCE, PANCHKULA 2018 (4) TMI 910 - CESTAT CHANDIGARH examined the decisions of various Courts where Section 11B has been held to be not applicable to refund of any amount made under any mistake of law. In the present case, the refund claim filed by the appellant would be governed by the provisions of limitation prescribed under Section 11B of Central Excise Act, 1944. Since the refund was filed after expiry of limitation the same cannot be entertained. Unjust enrichment - HELD THAT - This question would not arise as a refund is not sanctioned on merit. In these circumstances, refund is not admissible being barred by limitation as prescribed under Section 11B of Central Excise Act, 1944. In view of the claim being barred by limitation, other issues do not remain relevant. Appeal dismissed - decided against appellant.
Issues Involved:
1. Whether the refund claim filed by the appellant is governed by the limitation prescribed under Section 11B of the Central Excise Act, 1944. 2. Whether the appellant provided sufficient documentary evidence to establish that the service provided was in the nature of export of service under Export of Services Rules, 2005. 3. Whether the appellant passed the incidence of duty to its customers, invoking the principle of unjust enrichment. Issue-Wise Detailed Analysis: 1. Limitation under Section 11B of the Central Excise Act, 1944: The primary issue revolves around whether the refund claim filed by the appellant is subject to the limitation period prescribed under Section 11B of the Central Excise Act, 1944. The appellant argued that the amount paid by mistake should not be treated as duty, hence the limitation under Section 11B should not apply. They cited several decisions to support this view, including the Karnataka High Court's decision in CCE (Appeals), Bangalore vs. KVR Constructions and the Tribunal's decision in Hitachi Metals (India) Pvt. Limited vs. CCE & ST, Gurgaon. However, the Tribunal noted that the only provision under the Central Excise Act that permits refunds is Section 11B. It referred to the Supreme Court's decision in Collector of Chandigarh vs. Doaba Co-operative Sugar Mills, which emphasized that claims for refunds must adhere to the limitation period prescribed by the Act. The Tribunal concluded that even if the duty was paid without authority of law, the refund claim must still comply with the statutory limitation period under Section 11B. This view was reinforced by the Tribunal's previous decisions, including Petronet LNG Limited vs. CC, Ahmedabad and Veer Overseas Limited vs. CCE, Panchkula. 2. Documentary Evidence for Export of Service: The appellant failed to provide sufficient documentary evidence to establish that the service provided was in the nature of export of service under Export of Services Rules, 2005. The Revenue rejected the refund claim on the grounds that the appellant did not submit necessary documents like Contract/MoU. The Tribunal did not delve deeply into this issue as the refund claim was already found to be time-barred under Section 11B. 3. Unjust Enrichment: The issue of unjust enrichment was not addressed in the impugned order because the refund claim was not sanctioned on merit due to being barred by limitation. The principle of unjust enrichment would have been relevant only if the refund claim had been admissible on other grounds. Conclusion: The Tribunal dismissed the appeal on the grounds that the refund claim was barred by the limitation period prescribed under Section 11B of the Central Excise Act, 1944. The Tribunal emphasized that any refund claim filed before the Customs/Central Excise authorities must adhere to the statutory time limits and that the authorities do not have the jurisdiction to process refunds beyond these limits. Consequently, other issues, including the provision of documentary evidence and unjust enrichment, were deemed irrelevant. The appeal was dismissed with no order as to costs.
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