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2020 (4) TMI 243 - AT - Service TaxRefund of excess paid service tax - reverse charge mechanism - time limitation - period April, 2017 to June, 2017 - HELD THAT - Every refund claim arises on account of fact that the same was not required to be paid. Reference can be made to the Hon ble Madras High Court decision in the case of Assistant Commissioner of Service Tax, Chennai vs. Nataraj Venkat Associates 2014 (5) TMI 179 - MADRAS HIGH COURT laying down that the refund claim beyond the period of limitation provided under law is totally barred by limitation. Even the fact that the tax was paid under a mistake of law, cannot be adopted for grant of such refund. Refund cannot be allowed - appeal dismissed - decided against appellant.
Issues:
1. Time limitation for filing refund claim under Section 11B of the Central Excise Act, 1944. 2. Applicability of time limitation in case of excess payment of Service Tax under reverse charge mechanism. 3. Judicial precedent on refund claims filed beyond the time limitation. Issue 1: Time limitation for filing refund claim under Section 11B of the Central Excise Act, 1944: The appellant filed a refund claim for excess Service Tax paid under the reverse charge mechanism beyond the time limitation prescribed under Section 11B of the Central Excise Act, 1944. The Adjudicating Authority rejected the refund claim on the ground of time limitation as per Section 11B. The Commissioner (Appeals) affirmed the rejection, emphasizing the importance of adhering to the time limit for claiming refunds under the Act. Issue 2: Applicability of time limitation in case of excess payment of Service Tax under reverse charge mechanism: The appellant argued that the time limitation specified under Section 11B of the Central Excise Act, 1944 should not apply to their case as they had made an excess payment of Service Tax under a mistake of law. They contended that the excess amount should be treated as a deposit and refunded. However, the Commissioner (Appeals) maintained that the time limit for refund claims is crucial and cannot be overlooked, even in cases of alleged mistaken payments. Issue 3: Judicial precedent on refund claims filed beyond the time limitation: The Commissioner (Appeals) cited judicial precedents, including the decision of the Hon'ble Supreme Court in the case of Porcelain Electric Magg. Co. vs. Collector of Central Excise, New Delhi, which emphasized that refund claims filed before Revenue authorities must adhere to the time limits specified by the statute. Additionally, the Commissioner referred to the Hon'ble Madras High Court decision in Assistant Commissioner of Service Tax, Chennai vs. Nataraj & Venkat Associates, which upheld that refund claims exceeding the statutory time limit are barred by limitation, regardless of the reason for the overpayment. In conclusion, the appeal was dismissed as the time limitation for filing the refund claim under Section 11B was deemed applicable, and the judicial precedents supported the rejection of the claim due to the delay in filing beyond the prescribed period.
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