Service tax appeal limitation must follow Section 85, not Central Excise timelines, for refund-related disputes.

Appeals against refund-related orders under service tax law were wrongly dismissed as time-barred because the Commissioner (Appeals) applied the Central Excise Act limitation instead of Section 85 of the Finance Act, 1994. For service tax refund disputes, the appeal period is three months from the adjudication order, with a further condonable delay of three months on sufficient cause. The limitation-based dismissal was therefore unsustainable, and the matters were remitted for fresh consideration on limitation and, if necessary, on merits.

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Issues: Whether the appeals against the refund-related orders were wrongly dismissed as time-barred by applying the limitation period under the Central Excise Act, 1944 instead of the limitation scheme under Section 85 of the Finance Act, 1994.

Analysis: The dispute related to refund of service tax, for which the applicable limitation provision was Section 85 of the Finance Act, 1994. Under that provision, the appeal was required to be filed within three months from the date of the adjudication order, and the appellate authority could condone a further delay of three months upon satisfaction of sufficient cause. Since the Commissioner (Appeals) had proceeded on the wrong limitation provision, the dismissal on limitation could not stand.

Conclusion: The limitation-based dismissal was set aside and the matters were remitted to the Commissioner (Appeals) for fresh decision on limitation and, if necessary, on merits.

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