Time limit for claim of Refunds

[vasudevan unnikrishnan]

The refund procedures are made applicable from Central Excise Act,1944 as per sec 83 of Finance Act,1994.

Section 11B envisages different situations and different Relevant Date for filing of Refund claims.

In certain cases,the tax would have been paid during April or any such month wrongly on amount which is not taxable.

The mistake is noticed much after filing ST3 return and finalising the self assessment.in Oct.It could be even after April next year while finalising the Annual Accounts by the Auditor.In such a case as per section 11B,(f), the claim is to be filed within One year from the Date of Payment of Tax.and not the date of filing ST3 return after self assessment.

When demand can be raised with date of filing return as relevant date,what is the rationale in following date of payment for claiming Refund?.In all fairness,the relevant date should be the same as filing of return/self assessment as adopted for issue of SCN for demand for short payment/non payment in terms of section 73(1).

Expert views are solicited.

AI Summary

Debate on Service Tax Refund Time Limits: Calls for Aligning Section 11B Refunds with Demand Periods The discussion revolves around the time limits for claiming refunds under the Service Tax regime, as outlined in Section 11B of the Central Excise Act, 1944. Participants highlight the inconsistency between the one-year period for claiming refunds and the extended 2.5-year period for raising demands. They argue for parity in these time limits, suggesting that the relevant date for refunds should align with the date of filing returns, similar to demands. Some experts suggest pursuing the matter through a writ petition, while others note that GST provisions might address these discrepancies.