Export-related service tax refund allowed on merits, but belated refund claims were barred by the one-year limitation period.

Refund of service tax on terminal handling charges linked to export of goods was treated as admissible where the export nexus and tax payment were established, and procedural objections could not defeat the claim on merits. However, refund claims filed after the one-year period prescribed in the governing notification were held time-barred, because the limitation condition was mandatory and belated claims could not be entertained. The result was partial relief on the export-related refund claim, with the delayed refund claims rejected as beyond limitation.

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Issues: (i) Whether refund of service tax paid on terminal handling charges in relation to export of goods was admissible. (ii) Whether refund claims filed beyond the period of one year prescribed in the notification were barred by limitation.

Issue (i): Whether refund of service tax paid on terminal handling charges in relation to export of goods was admissible.

Analysis: The claim for refund was examined in the context of export of goods, receipt of the services in relation to such exports, and payment of service tax by the service provider. The issue of refund on terminal handling charges had already been concluded by the Gujarat High Court in connected litigation involving the same assessee and similar services. In that factual and legal setting, procedural objections could not justify denial of refund where the export nexus and tax payment were established.

Conclusion: The refund claim on terminal handling charges was admissible and the assessee succeeded on this issue.

Issue (ii): Whether refund claims filed beyond the period of one year prescribed in the notification were barred by limitation.

Analysis: The refund notification prescribed a one-year period for making the claim. On the admitted facts, the rejected claims had been filed beyond that period. Since the limitation requirement was treated as mandatory, claims presented after expiry of the prescribed period could not be entertained.

Conclusion: The refund claims beyond one year were time-barred and the assessee failed on this issue.

Final Conclusion: The assessee obtained relief on the refund relating to terminal handling charges, while the belated refund claims were upheld as barred by limitation, and the Revenue's challenge failed.

Ratio Decidendi: Where refund of service tax on export-related services is otherwise established on merits, procedural objections cannot defeat the claim, but a refund claim filed beyond the period prescribed in the governing notification is barred by limitation.

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