Limitation for Rule 5 refund claims in export of services follows the quarter-end of FIRC receipt, with remand ordered.

Refund claims under Rule 5 of the Cenvat Credit Rules, 2004 in export of services cases were held to require limitation to be computed by reference to the end of the quarter in which the foreign inward remittance certificate is received, in line with the binding Larger Bench view. The Tribunal found that the original authority had misapplied the notification and rejected the claims as time-barred without following that view. The limitation issue was decided in favour of the assessee, and the matter was remanded for fresh adjudication of the refund claims on the correct legal basis.

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Issues: Whether the refund claims under Rule 5 of the Cenvat Credit Rules, 2004 were barred by limitation and whether the relevant date for quarterly refund claims in export of services cases should be taken as the end of the quarter in which the foreign inward remittance certificate was received.

Analysis: The appeals challenged the remand order passed without deciding the limitation issue raised against rejection of refund claims. The Tribunal followed the Larger Bench ruling on refund claims under Rule 5, which held that in cases of export of services and quarterly refund claims, the relevant date for computing limitation may be taken as the end of the quarter in which the foreign inward remittance certificate is received. On that basis, the Tribunal held that the original authority had misapplied the notification and had not applied the binding Larger Bench view while rejecting the claims as time-barred.

Conclusion: The limitation issue was answered in favour of the assessee, and the matter was remanded to the original authority for fresh adjudication of the refund claims in accordance with the Larger Bench ruling.

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