2015 (1) TMI 814 - AT - Service Tax

Time limit for filing refund claims clarified for service exports

BA CONTINUUM INDIA PVT LTD Versus COMMISSIONER OF CUSTOMS, CENTRAL EXCISE AND SERVICE TAX HYDERABAD-IV

The Appellate Tribunal CESTAT Bangalore ruled that the time limit for filing refund claims in the context of service exports should be reckoned from the ... Denial of refund claim - Time limit for refund claim - Held that:- time limit for considering the appeal under Section 11 has to be reckoned from the date of export as discussed above. The appellants are contesting this ground. The learned counsel relied upon the decision in the case of Taco Faurecia Design Center Pvt. Ltd. and ors. Vs. CCE, Pune [2014 (3) TMI 78 - CESTAT MUMBAI] to submit that in the case of export of services, the relevant date has to be counted from the date of receipt of consideration. We find the decision to be applicable to the facts of this case. As regards the merits, the Commissioner has already taken a view with regard to several services and has remanded the matter for granting the refund after considering the documents etc. With regard to the Commissioners order as clearly held the appellant is to be eligible for refund on merits and only limitation is the issue, since we have taken a view that limitation has to be counted in a different manner, the original adjudicating authority has to proceed on the basis of the decision cited hereinabove. As regards merit, since the Revenue is not in appeal against the decision of the Commissioner(Appeals), his decision will have to be implemented. With reference to cases where there are no clear observations of the Commissioner(Appeals), the original adjudicating authority may after giving reasonable opportunity to the appellants to present their case decide the eligibility of particular input service for refund in accordance with law - Decided in favour of assessee. Issues:1. Interpretation of time limit for filing refund claim in export of services.Analysis:The judgment by the Appellate Tribunal CESTAT Bangalore involved a common issue in three appeals regarding the time limit for filing refund claims in the context of service exports. The lower authorities had determined that the refund claim should have been submitted within one year from the date of export. However, the Commissioner(Appeals) held that for electronic transmission of data, the date of transmission should be considered as the relevant date. This interpretation was contested by the appellants. The Tribunal considered the decision in the case of Taco Faurecia Design Center Pvt. Ltd. and ors. Vs. CCE, Pune, which stated that in the case of export of services, the relevant date should be counted from the date of receipt of consideration. The Tribunal found this decision applicable to the present case and concluded that the time limit for considering the appeal under Section 11 should be reckoned from the date of receipt of consideration.Regarding the merits of the case, the Commissioner had already taken a view on several services and remanded the matter for granting the refund after further consideration of documents. The Tribunal held that the appellants were eligible for refund on merits, and the only limitation was the issue of time limit. Since the Tribunal determined a different manner of counting the limitation, it directed the original adjudicating authority to proceed based on this decision. The Tribunal also noted that where there were no clear observations by the Commissioner(Appeals), the original adjudicating authority should provide a reasonable opportunity for the appellants to present their case and decide the eligibility of particular input services for refund in accordance with the law. Consequently, the Tribunal set aside all three impugned orders and remanded the matters to the original adjudicating authority for a fresh decision following the principles of natural justice and in accordance with the law.