Refund limitation under exemption notification failed where no delay was alleged and the claims were found within time.

Refund claims for January and February 2011 were found not to be time-barred because the show cause notice did not allege any delay and the original authority had already recorded that the claims were within time. The appellate finding that the shorter limitation under Notification No. 9/2009-ST applied, on the ground that the period preceded Notification No. 17/2011-ST, was held unwarranted. The rejection of refund on limitation was therefore unsustainable, and the assessee was held eligible for refund under the applicable exemption notification.

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Issues: Whether the refund claim for January 2011 and February 2011 was time-barred and therefore inadmissible, and whether the appellant remained eligible for refund under the applicable exemption notification.

Analysis: The refund claim was rejected on the premise that the relevant period preceded Notification No. 17/2011-ST and that the shorter limitation under Notification No. 9/2009-ST applied. However, the show cause notice did not allege any delay in filing the refund claim. The original authority had also recorded a clear finding that the claims were within time. In these circumstances, the appellate authority's finding of time bar was held to be unwarranted, and the rejection of refund on limitation was found unsustainable.

Conclusion: The refund claim was not time-barred and the appellant was held eligible for refund; the rejection of refund for January 2011 and February 2011 was set aside in favour of the assessee.

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