Refund limitation for export-related service tax claims depends on the quarterly filing period, not later reverse-charge payment.

Refund of service tax under Notification No. 41/2007-ST was available for taxable input services used in export of goods, and clause (e) required the claim to be filed quarterly within six months from the end of the relevant quarter of export. Where the export of goods and the export-related use of the service were undisputed, filing within that prescribed period satisfied the limitation condition. The later payment of service tax under reverse charge did not affect compliance with the refund filing timeline, so rejection of the claim as time-barred was not sustainable.

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Issues: Whether the refund claim of service tax paid on input services used for export of goods could be rejected as time-barred when it was filed within six months from the end of the relevant quarter, notwithstanding that payment of the service tax on reverse charge was made later.

Analysis: The refund scheme under Notification No. 41/2007-ST dated 06.10.2007 permits refund of service tax on taxable services received for export of goods, and clause (e) requires the claim to be filed on a quarterly basis within six months from the end of the relevant quarter during which the goods were exported. The export of goods during the relevant quarter was not in dispute, nor was the use of the commission service for export purposes. The refund application was filed within the prescribed period, and the later date of payment of tax under reverse charge did not alter compliance with the filing condition. Rejection on limitation was therefore not sustainable.

Conclusion: The refund claim was not barred by limitation and the rejection order could not be sustained.

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