2010 (7) TMI 163 - AT - Service Tax

Exemption by refund- Refund of service tax paid on services used in export of goods rejected on limitation. Initial date of filing refund claim relevant and subsequent date of filing in proper form and with documents not to be considered as actual date of filing. Held that- initial refund claim filed well within time in present case. Refund claim to be considered as within limitation. Impugned order set aside. Matter remand back.

Summary

Issues:

1. Denial of refund claim based on limitation under Notification No. 41/2007-S.T.
2. Consideration of the date of filing the refund claim.
3. Applicability of previous judgments on the issue.

Issue 1: Denial of refund claim based on limitation under Notification No. 41/2007-S.T.:

The appellant's claim for refund of accumulated grant of input services was denied on the ground of limitation. The Commissioner (Appeals) highlighted several shortcomings in the original refund claim filed by the appellant, including the non-availability of original bills/invoices, incomplete description of goods exported, and lack of evidence for bill payments. The divisional office returned the claim to the appellant due to these deficiencies. Despite having ample time to resubmit the claim, the appellant failed to do so promptly. The Commissioner (Appeals) emphasized that the appellant's incomplete claim and delayed resubmission indicated a lack of diligence on the appellant's part.

Issue 2: Consideration of the date of filing the refund claim:

The appellant's advocate cited a judgment from the Delhi High Court to argue that the date of filing the claim should be considered as the initial filing date, rather than the subsequent date when the claim is resubmitted with additional documents. The advocate contended that the initial filing was within the stipulated time, and therefore, the claim should not be time-barred. The Tribunal agreed with this argument, stating that the law on the issue had been settled by previous decisions. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Commissioner (Appeals) for a decision on the merits of the claim.

Issue 3: Applicability of previous judgments on the issue:

The Tribunal acknowledged the relevance of previous judgments in determining the date of filing a refund claim and the impact of subsequent submissions on the claim's timeliness. By referencing the Delhi High Court's decision in CCE Delhi v. Arya Exports and Industries, the Tribunal affirmed that the initial filing date should be the primary consideration for assessing the claim's adherence to the limitation period. This reaffirmed legal precedent guided the Tribunal's decision to overturn the denial of the refund claim and review the matter based on its merits.

This comprehensive analysis of the judgment delves into the issues of denial of refund claim, the interpretation of the filing date, and the significance of prior legal decisions in shaping the outcome of the case.