Refund notification eligibility depends on the service being covered during the relevant period; later expansion applies prospectively only.

Refund under an exemption or refund notification is available only if the services fall within the specified category during the relevant claim period. Services that were not covered when the claim period ended cannot be brought in by a later notification that enlarges the category prospectively. The refund claim under Notification No. 40/2007-ST therefore was not admissible for services added only from 1.4.2008 by Notification No. 17/2008-ST, and rejection of the claim was justified in law.

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Issues: Whether refund of service tax claimed under Notification No. 40/2007-ST could be allowed in respect of services that were not specified under that notification and were brought within the notified category only by Notification No. 17/2008-ST with effect from 1.4.2008.

Analysis: The refund claim was filed under Notification No. 40/2007-ST. The services in question were not among the specified services under that notification when the claim period ended on 31.3.2008. Although Notification No. 17/2008-ST later included those services, that notification operated only from 1.4.2008. Since the claim related to a prior period, the later expansion of the notification could not be applied to confer eligibility for refund.

Conclusion: The refund was not admissible under Notification No. 40/2007-ST, and the rejection of the claim was /justified in law; the outcome is against the assessee and in favour of the Revenue.

Ratio Decidendi: Refund under an exemption or refund notification can be granted only if the services fall within the specified category during the relevant claim period, and a later notification enlarging that category applies prospectively unless expressly made retrospective.

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