Statutory limitation governs service tax refunds even where levy is alleged to be without authority of law.

A refund of service tax alleged to have been collected without authority of law must still be sought under the governing statute within the prescribed limitation period. Here, the assessee had voluntarily registered and paid service tax without protest, then claimed refund after a later circular clarified taxability. The Tribunal held that section 11B, as made applicable to service tax by section 83 of the Finance Act, 1994, governed the claim, so the refund had to be filed within one year from the relevant date. Because the claim was made beyond that period, it was time-barred and not maintainable.

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Issues: Whether the refund claim of service tax paid without protest was barred by limitation under section 11B as made applicable to service tax, and whether the amount could be returned outside that statutory period on the ground that the levy was without authority of law.

Analysis: The respondent had voluntarily taken registration, paid service tax for the relevant period without protest, and filed the refund claim only after the Board's circular clarified the taxability position. The Tribunal held that even where tax is collected by misinterpretation or misapplication of law, refund must still be claimed under the relevant enactment and within the limitation period prescribed therein. By virtue of section 83 of the Finance Act, 1994, the limitation under section 11B applied to service tax refunds. Since the claim was filed beyond one year from the relevant date, it was barred by limitation.

Conclusion: The refund claim was time-barred and the assessee was not entitled to refund outside the statutory limitation period.

Final Conclusion: The Revenue's challenge succeeded and the refund order was set aside because the claim for return of service tax was not maintainable after expiry of the limitation period.

Ratio Decidendi: A refund of tax alleged to have been collected without authority of law must nevertheless be sought under the governing statute within the prescribed limitation period, where that limitation applies.

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