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2019 (7) TMI 1182 - AT - Service TaxCENVAT Credit - time limitation - whether the refund of Cenvat credit claimed by the Appellant is beyond the limitation period as prescribed under Section 11B of the Central Excise Act, 1944 as applicable to Service Tax vide Section 83 of the Finance Act, 1994? - HELD THAT - Even though the appellant had paid service tax on the services, which is not leviable to service tax during the relevant time, still they had to file the refund claim within the period prescribed under Section 11B since the statutory authority cannot ignore the specific enactments under which the refund claim is filed. Admittedly in the instant matter the refund claim had been filed beyond the statutory time limit of one year, therefore, the learned Commissioner was justified in rejecting the Appeal filed by the Appellant. Appeal dismissed - decided against appellant.
Issues Involved:
1. Whether the refund of Cenvat credit claimed by the Appellant is beyond the limitation period as prescribed under Section 11B of the Central Excise Act, 1944. Detailed Analysis: Issue 1: Limitation Period for Refund Claim - Facts: The Appellants, providing Erection, Commissioning, and Installation Services, filed two refund claims on 14.2.2014 for the periods 8.10.2012 and 8.1.2013, totaling ?1,25,147/-. According to Section 11B of the Central Excise Act, 1944, applicable to Service Tax via Section 83 of the Finance Act, 1994, these claims should have been filed within one year from the relevant dates, i.e., by 7.10.2013 and 7.1.2014, respectively. A show cause notice was issued, and the claims were rejected as time-barred by the Adjudicating Authority and upheld by the Commissioner. - Appellant's Argument: The Appellant argued that the services provided to the Department of Atomic Energy and the Municipal Corporation of Greater Mumbai were exempted from tax. The tax was mistakenly paid due to confusion following the introduction of the Negative List in Service Tax w.e.f. 1.7.2012. They claimed that the amount paid was not a duty but a deposit with the Government, thus Section 11B does not apply. They cited the Supreme Court decision in Mafatlal Industries Ltd. v. UOI to support their argument that the one-year limitation should not apply. - Respondent's Argument: The Authorized Representative for the Revenue contended that the refund claims were rightly rejected as time-barred, emphasizing that the provisions of Section 11B must be followed strictly, as upheld by the Supreme Court in Mafatlal Industries and Anam Electrical Manufacturing Co. cases. - Tribunal's Analysis: The Tribunal noted that the amount was deposited under a proper service tax head and appropriated by the Government as service tax. Section 11B mandates that any refund claim must be filed within one year from the relevant date, accompanied by necessary evidence. The Tribunal found the Appellant's argument unconvincing, emphasizing that the Tribunal, unlike Constitutional Courts, does not have the power to allow refunds beyond the statutory time-limit prescribed by the statute. The Tribunal cited the Supreme Court's decision in Miles India Ltd. v. Assistant Commissioner, Customs, which held that authorities under a statute are bound by the period of limitation provided under that statute. - Precedents and Legal Principles: The Tribunal referred to various judgments, including Mafatlal Industries, Anam Electrical, and Jumax Foam Pvt. Ltd. v. UOI, which consistently held that refund claims must be filed within the statutory period prescribed by Section 11B. The Tribunal also noted that in a similar case, Manorath Builders (P) Ltd., the Delhi High Court held that even if the tax was collected erroneously, the refund claim must be filed within the statutory period. - Conclusion: The Tribunal concluded that the Appellant's refund claim, filed beyond the statutory time limit of one year, was rightly rejected by the Commissioner. The Tribunal upheld the Commissioner's order, noting that the statutory authority cannot ignore the specific enactments under which the refund claim is filed. Final Judgment: The Tribunal found no infirmity in the order of the Commissioner (Appeals) and rejected the Appeal filed by the Appellants. The order was pronounced in the open Court on 19/07/2019. Summary: The Tribunal upheld the rejection of the Appellant's refund claims as time-barred under Section 11B of the Central Excise Act, 1944. The Tribunal emphasized that the statutory period for filing refund claims must be strictly adhered to, and the Tribunal does not have the authority to allow refunds beyond this period. The Appellant's argument that the amount paid was not a tax but a deposit was found unconvincing, and the Tribunal cited several precedents to support its decision. The Appeal was dismissed, and the Commissioner's order was affirmed.
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