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2019 (5) TMI 262 - AT - Service TaxRefund of service tax - N/N. 41/2016-ST, dated 22.09.2016 - rejection on the ground of time limitation - HELD THAT - SIPCOT has informed the appellant to file refund claim only with much delay. The last date for filing the refund claim is 30.09.2017. The letter has been issued by SIPCOT only on 12.09.2017 although notification was issued on 22.09.2016. However, the appellant has taken efforts to file the refund claim on 03.10.2017. It is also submitted by the consultant that they were directed by SIPCOT to file the refund claim before divisional office of the appellant/assessee. The last date for filing the refund claim according to the department is 30.09.2017. It is brought to the notice that 29th, 30th of September, 2017 as well as 1st and 2nd October, 2017 were Government holidays and non-working days in the State of Tamil Nadu. Therefore, the next working day was only 03.10.2017. The appellant has approached the Alandur office on 03.10.2017 and from there they were directed to approach the Egmore office. Thus, the appellant has taken all steps to make the refund claim within time. Only because they had to file the refund claim at Egmore office, the delay of one day, if any, has occurred. There has been delay on the part of the SIPCOT to inform the appellant and also taking note of the fact that the last date for filing the refund claim was a holiday, in the interest of justice, the delay of one day, if any, has to be condoned. Appeal allowed - decided in favor of appellant.
Issues:
Rejection of refund claim as time-barred under Notification No.41/2016-ST. Analysis: The case involves the rejection of a refund claim by the department on the grounds of being time-barred under Notification No.41/2016-ST. The notification stipulates that an application for a refund of service tax must be made within six months from the date on which the Finance Bill, 2017 receives the assent of the President. The appellant, engaged in providing Business Support Services, acquired land on a 99-year lease from SIPCOT, paying service tax on Development Charges. The refund claim was filed on 04.10.2017, while the department contended it should have been filed by 30.09.2017, as per the notification. The appellant argued that the delay was due to SIPCOT's late communication regarding the need for a separate refund claim and jurisdictional issues in filing the claim. The appellant's consultant highlighted that SIPCOT initially collected and paid the service tax, leading the appellant to believe SIPCOT would handle the refund claim. However, SIPCOT later directed the appellant to file the claim separately, causing a delay. The appellant faced challenges in filing the claim due to jurisdictional issues between Alandur and Egmore Divisions. Despite the delay, the appellant made efforts to file the claim promptly, with the courier reaching the Egmore Division on 04.10.2017. The appellant contended that the delay, if any, was minimal and attributed to SIPCOT's delayed communication and jurisdictional complexities. The department, represented by the Authorized Representative, maintained that the refund claim was time-barred as per the notification's provisions. The appellant should have filed the claim by 30.09.2017 but submitted it on 04.10.2017, missing the deadline. The Authorized Representative emphasized the lack of provisions for condoning delays in the notification, supporting the rejection of the claim as per the specified timeline. After hearing both sides, the Judicial Member analyzed the case in detail. Considering the circumstances, including SIPCOT's delayed communication, jurisdictional complexities, and the fact that the last date for filing fell on a holiday, the Member decided to condone the delay of one day. The Member viewed the notification as beneficial, aiming to promote industry development by exempting service tax on Development Charges. In the interest of justice and based on the peculiar facts of the case, the Member set aside the impugned order rejecting the refund claim, allowing the appeal with consequential reliefs. In conclusion, the judgment delves into the intricacies of the timeline for filing refund claims under Notification No.41/2016-ST, addressing the challenges faced by the appellant in meeting the deadline and ultimately deciding to condone the minimal delay based on the unique circumstances of the case.
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