2020 (3) TMI 1336 - AT - Service Tax

Refund claim rejected due to late filing and failure to prove non-passing of tax burden.

The Tribunal upheld the rejection of a refund claim by the Commissioner of Central Excise (Appeal) Chandigarh II, citing the claim was filed beyond the ... Refund of service tax - rejection on the ground of time limitation - refund claim was filed beyond the period of one year from the relevant date - Section 11B of the Central Excise Act, 1944 as made applicable to Service Tax matters by Section 83 of Finance Act, 1994 - HELD THAT:- The issue involved in the matter is squarely covered by the decision of the Larger Bench of Tribunal In the case of M/S VEER OVERSEAS LTD. VERSUS CCE, PANCHKULA [2018 (4) TMI 910 - CESTAT CHANDIGARH] where it was held that time limit prescribed under Section 11B of the Central Excise Act, 1944 will govern claim for refund of service tax. Since the issue is squarely covered by the decision of the Larger Bench of the Tribunal, there are no merits in this appeal. Appeal dismissed. Issues:1. Refund claim rejected due to limitation period.2. Appellant's argument of mistaken belief and unjust enrichment.3. Applicability of Section 11B of the Central Excise Act, 1944 to the refund claim.Issue 1: Refund claim rejected due to limitation period:The appeal was against the rejection of a refund claim by the Commissioner of Central Excise (Appeal) Chandigarh II. The appellant had filed a refund claim beyond the one-year period specified under Section 11B of the Central Excise Act, 1944. Both the Assistant Commissioner and the Commissioner (Appeal) rejected the claim on this ground.Issue 2: Appellant's argument of mistaken belief and unjust enrichment:The appellants argued that the amount deposited by them was under a mistaken belief that the tax was payable, which later turned out not to be the case. They contended that any amount deposited under a mistake of law should not be considered as tax, and therefore, the limitation period under Section 11B should not apply. They also claimed that the refund was only for the amount not passed on to their customers, supported by a certificate from a Chartered Accountant. The appellants relied on various cases and circulars to support their arguments.Issue 3: Applicability of Section 11B of the Central Excise Act, 1944 to the refund claim:The Tribunal considered whether the refund claim filed by the appellant was subject to the limitation period prescribed under Section 11B of the Central Excise Act, 1944. The Tribunal referred to a decision of the Larger Bench in the case of Veer Overseas Ltd, which held that the claim for refund of service tax is governed by the provisions of Section 11B for the period of limitation. The Tribunal emphasized that the statutory time limit cannot be extended by any authority, as per the Supreme Court's rulings.In the absence of representation from the appellants during the hearings, the Authorized Representative for the revenue reiterated that the refund claim was rightly rejected due to being filed beyond the limitation period and the failure to demonstrate non-passing of the tax burden to customers. The Tribunal upheld the impugned order based on the precedents and legal provisions cited, dismissing the appeal and affirming the rejection of the refund claim.This summary provides a detailed analysis of the legal judgment involving the rejection of a refund claim due to a limitation period, the appellant's argument of mistaken belief and unjust enrichment, and the applicability of Section 11B of the Central Excise Act, 1944 to the refund claim.