Protest letter as refund claim can defeat limitation where it clearly seeks rebate and relief

A protest letter can constitute a valid refund claim if it clearly conveys the assessee's intention to seek refund or rebate, especially where no prescribed refund proforma existed for the relevant period. The letter dated 30-3-1977 expressly registered the assessee's claim for rebate and sought specific relief, so it was treated as a proper refund claim and the limitation objection failed. As the authorities had not examined the claim on merits, the matter was sent back for reconsideration by the jurisdictional Assistant Collector.

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Issues: Whether the letter dated 30-3-1977 could be treated as a valid refund claim or protest so as to save limitation.

Analysis: The letter expressly stated that it may be treated as registering the assessee's claim for rebate and also contained a specific claim for relief. No particular proforma for filing the refund claim had been prescribed during the relevant period. In such a situation, a protest letter can be construed as a refund claim when it clearly conveys the assessee's intention to seek the benefit claimed. The earlier rejection of the claim as time-barred was therefore not sustainable. Since the authorities had not examined the claim on merits, the matter required reconsideration by the jurisdictional Assistant Collector.

Conclusion: The letter was treated as a proper refund claim and the objection of limitation was rejected in favour of the assessee.

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