2010 (1) TMI 142 - AT - Service Tax

Service tax refund claim remanded for fresh consideration due to revised limitation period interpretation. Reexamination ordered.

The Tribunal set aside the lower authorities' decisions and remanded the case for fresh consideration on a refund claim for service tax paid between April ... Claim of refund under notification no. 41/2007 – period of limitation – original period was 60 days - circular No.112/06/2009-ST dated 12.3.2009. With reference to the relevant provision of Notification 41/2007-ST ibid, the circular clarified that, consequent upon revision of limitation period, any refund claim filed within such revised limitation period would be admissible if it is otherwise in order. Held that: I set aside the orders of the lower authorities and remand this case to the original authority for fresh decision on the refund claim in question. It is made clear that the adjudicating authority should examine the limitation issue also afresh. If the refund claim is found to be within the prescribed period of limitation, it will have to be considered on merits. Issues:Refund claim filed beyond prescribed period under Notification No.41/2007-ST - Appeal against rejection of claim - Interpretation of circular No.112/06/2009-ST on revised limitation period.Analysis:The appellant had filed a refund claim for service tax paid between April to June 2008, beyond the period specified by Notification No.41/2007-ST. The claim was rejected as time-barred by the lower authorities. The authorized representative argued that the claim was filed within the time prescribed by circular No.112/06/2009-ST, which clarified the revised limitation period for refund claims. The circular allowed refund claims for specified taxable services used for export of goods in the quarter March to June 2008 to be filed until 31st December 2008. Since the circular was issued after the lower authorities' decisions, the Tribunal set aside the orders and remanded the case to the original authority for a fresh decision on the refund claim. The adjudicating authority was directed to reexamine the limitation issue and determine if the claim was within the prescribed period. The party was to be given a reasonable opportunity to present their case.This judgment highlights the importance of adherence to prescribed time limits for filing refund claims and the significance of relevant circulars in interpreting such limitations. It underscores the need for authorities to consider revised limitation periods and provide parties with a fair chance to be heard. The decision to remand the case for fresh consideration ensures that the claim is evaluated based on the correct legal framework and procedural requirements, emphasizing the principles of natural justice and due process in tax matters.