Refund claim for accumulated CENVAT credit time-barred under s.11B as applied by s.83; appeal dismissed

CESTAT held the refund claim for accumulated CENVAT credit was time-barred under s.11B as applied to service tax by s.83 of the Finance Act, 1994; the delay in filing the refund attracted the statutory bar. The Tribunal found no infirmity in the Commissioner (Appeals) order upholding rejection of the refund and dismissed the appeal.

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Appellant, a 100% EOU, sought refund of accumulated Cenvat credit under Rule 5, Cenvat Credit Rules, 2004 read with Notification No. 05/2006-CE (NT). The Original Refund Sanctioning Authority rejected the claim as time-barred under "Section 11B" as made applicable to service tax by Section 83 of the Finance Act, 1994. Commissioner (Appeals) upheld that rejection after distinguishing authorities relied on by the appellant. The central question was whether the time limit in "Section 11B" applies to such refunds. The Tribunal noted coordinated benches have consistently held that refunds are governed by "Section 11B" unless another statutory provision provides otherwise, relying on the Constitution Bench precedent in Mafatlal Industries Ltd. Various subsequent decisions were cited in support of applying the "time bar". On review of records and submissions, the Tribunal found delay in filing the refund and no infirmity in the appellate order; appeal dismissed.

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