2022 (10) TMI 516 - AT - Service Tax

Refund claim of service tax paid on input service used for export of the manufactured goods - Computation of time period - whether the period of one year should be computed from the date of resubmitting the refund claim or the date of original claim? - HELD THAT - Needless to say that the date of original submission has to be taken for computing the period of one year as it is the date on which the appellant has filed the claim initially. The claim has been returned and not processed and rejected by the department. When the claim is returned for resubmission, the appellant is allowed to make the required rectification. The rejection of the refund claim on the ground that the same is time-barred when computed from date of resubmission of the refund claim is erroneous and requires to be set aside - appeal allowed.

Summary

Issues:
1. Computation of the period of one year for refund claim.
2. Original submission date vs. resubmission date for refund claim computation.

Analysis:
1. The appellant filed a refund claim for service tax paid on input services used for exporting goods as per Notification No. 41/2012-ST. The claim was for October 2013 to March 2014, received by the department on 7.10.2014. After resubmission on 20.1.2015, the refund of Rs.1,58,739/- was sanctioned. However, a Show Cause Notice was issued later proposing to recover the refund. The department rejected the refund based on the period of one year being computed from the resubmission date, not the original claim date. The appellant appealed, arguing the period should be calculated from the original submission date. The Tribunal agreed, citing that the original submission date should be considered for the one-year period calculation. The rejection based on the resubmission date was deemed erroneous, and the refund claim was upheld.

2. The key issue in the appeals was whether the one-year period for the refund claim should be calculated from the original submission date or the resubmission date after rectification. The appellant contended that the one-year period should start from the original claim submission date. The Tribunal concurred, emphasizing that the date of the original submission should be used for computing the one-year period. As the claim was returned for rectification and not processed initially, the rejection based on the resubmission date was deemed incorrect. Consequently, the impugned orders were set aside, and the appeals were allowed with any necessary consequential relief.

This judgment clarifies the importance of considering the original submission date for calculating the one-year period for refund claims, especially when claims are returned for rectification and resubmission. The decision provides guidance on the correct interpretation of timelines in such cases, ensuring fair treatment for appellants seeking refunds.