2019 (3) TMI 876 - AT - Service Tax

Refund of service tax - commission paid to Foreign Agent which was otherwise not payable as per Notification No. 14/2014-ST - time limitation - refund rejected on the ground that it was filed beyond the period of 1 year from the relevant date i.e. payment of service tax - Held that - The issue that whether any amount paid as service Tax/duty without authority of law would be governed by Section 11B for the purpose of time limit in case of refund of the same. This issue has been elaborately dealt in the case of M/s Petronet LMG Ltd Vs. CC 2018 (8) TMI 111 - CESTAT AHMEDABAD , where it was held that all the refund claims under the Customs Act has to be dealt with under the provisions of Section 27. Every refund claim is governed by Section 11B, hence, the period stipulated of one year in filing refund claim from the relevant date is also applicable. Appeal dismissed - decided against appellant.

Summary

Issues involved:
Whether the appellant is entitled to a refund of Service Tax paid on commission to a Foreign Agent beyond the one-year time limit from the relevant date as per Notification No. 14/2014-ST.

Analysis:
1. The appellant argued that the Service Tax was not payable as per Notification No. 14/2014-ST, making the payment unauthorized. The consultant relied on judgments like Monnet International Ltd and Flemingo Duty Free Shop Pvt. Ltd.

2. The Revenue contended that even though the Service Tax was exempted, the appellant paid it under the service tax head, making the refund governed by Section 11B's time limit condition. Judgments like Veer Overseas Ltd and Sesa Goa Ltd were cited.

3. The Tribunal referenced M/s Petronet LMG Ltd Vs. CC-AHM, emphasizing that refunds of duty paid without legal authority are subject to the time limit under the Customs Act. Various Supreme Court judgments were cited to support the application of statutory time limits for refund claims.

4. The Tribunal concluded that any refund filed before Customs/ Central Excise authorities must adhere to the provisions of the Acts and limitations under Section 27/Section 11B. The time limit starts from the date of the relevant order or judgment.

5. The alternative argument that the refund claim was filed within the time limit from the date of the Tribunal order was rejected. The period for claiming a refund was determined from the date of the Commissioner (Appeal) order.

6. The Tribunal upheld the impugned order based on the precedent that every refund claim is subject to Section 11B, including the one-year time limit from the relevant date.

7. The judgment highlighted the importance of adhering to statutory time limits for refund claims, emphasizing that departmental authorities have no jurisdiction to sanction refunds filed beyond the specified period.

8. The decision reinforced that in cases of disputes on merits, the limitation period starts from the final decision date in the assessee's case, as established in the Dena Snuff Pvt. Limited vs. CCE, Chandigarh case.

In conclusion, the Tribunal dismissed the appeal, upholding the impugned order due to the application of Section 11B's time limit for refund claims and the significance of adhering to statutory provisions.