100% EOU -Refund claim

[Guest]

Dear Sirs,

One of my friends is working in a BPO (call center) which is only 100% exported oriented.  They have no services rendered within the country.

 

This company has suffered from the heavy rate of attrition which has effected the non filing of refund claim for the service tax paid on input services availed for provision of outbound services.

 

They have not filed the refund claims from the year 2006-07 onwards.  They have very heavy amount of cenvat credit to the extent of Rs.1/- crore to Rs.1.5 crores only during 2006-07 to first half in 2008-09.

 

Now they want to file refund claims for the period from 2007-08 onwards.  

 

Is there is any chance of realising the above refunds beyond the period of limitation  of 12 months time after export of services.

 

Any distinguished case laws are available in support of their refund claims as their services were all exported.

 

Kindly help by giving some suggestion or providing any case law.

AI Summary

BPO Company Seeks Service Tax Refunds for Unclaimed Credits Since 2007-08, Citing Rule 5 of Cenvat Credit Rules A BPO company, fully export-oriented, has not filed refund claims for service tax on input services since 2006-07 due to high employee turnover. They have accumulated significant CENVAT credit and seek to file refund claims from 2007-08 onwards, questioning the possibility of obtaining refunds beyond the 12-month limitation period. A reply suggests that refunds can be granted under Rule 5 of Export of Service Rules, 2005, and Rule 5 of Cenvat Credit Rules, 2004, when adjustment is not possible. Another participant shares a similar issue with time-barred refund claims for service tax on imported services.