2022 (6) TMI 101 - AT - Service Tax

Refund of the unutilised input services - Rule 5 of Cenvat Credit Rules read with Notification No. 27/2012-CE (NT) - Rejection of refund on the ground of time limitation - HELD THAT - The Court below have erred in taking the date of defect removal as the date of filing the refund claim. Date of filing refund claim in the facts of the present case is 30.03.2017 and accordingly, it is held that the appellant has filed refund claim within the period of limitation. The Adjudicating Authority is directed to disburse the refund claim within a period of 45 days from the date of receipt of copy of this order alongwith interest under Section 11BB of the Act - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Refund claim rejection under Rule 5 of Cenvat Credit Rules and Notification No. 27/2012-CE (NT) on the ground of limitation.

Analysis:
The appellant, an exporter of software services, filed a refund claim for unutilised input services for the period January, 2016 to March, 2016 on 30.03.2017. The Revenue issued a deficiency memo pointing out missing documents in the claim. The appellant rectified the defects on 04.09.2017. However, the refund claim was rejected on the ground of limitation as it was initially filed on 31.03.2017, beyond the one-year period. The Commissioner (Appeals) upheld the rejection. The appellant argued that the original filing date should be considered, not the date of defect rectification, as the date of filing. The Tribunal agreed, holding that the date of filing was 30.03.2017, within the limitation period. The appeal was allowed, and the impugned order was set aside, directing the refund to be disbursed within 45 days with interest under Section 11BB of the Act.

This judgment primarily dealt with the interpretation of the date of filing a refund claim under Rule 5 of Cenvat Credit Rules and Notification No. 27/2012-CE (NT) in the context of limitation. The Tribunal held that the original filing date, not the date of defect rectification, should be considered as the date of filing for all purposes. This interpretation is crucial in determining the validity of refund claims and ensuring compliance with the statutory timelines prescribed for such claims. The decision provides clarity on the procedural aspects of filing refund claims and emphasizes the importance of adhering to statutory timelines in such matters to avoid rejection on grounds of limitation.

The judgment underscores the significance of strict adherence to procedural requirements and timelines in filing refund claims under the relevant provisions of the law. It highlights the need for taxpayers to ensure that all necessary documents are submitted correctly and within the prescribed time limits to avoid rejection of claims on procedural grounds. By clarifying the importance of the original filing date in determining the validity of refund claims, the Tribunal's decision contributes to promoting consistency and efficiency in the administration of tax laws related to refund claims. Taxpayers and tax authorities can benefit from this clarification to streamline the process of handling refund claims and ensure compliance with statutory provisions.