21 - Refund

Yes. In the case of Brite Neon Sign [2001 (11) TMI 3 - CEGAT, NEW DELHI] , it was held that the amounts, totalling to ₹ 99,383/-, were credited to the Revenue under the Head of Account "0044-Service Tax" through TR-6 challans (copies available on record). Those payments were purportedly payments of service tax only. They were payments towards service tax admittedly too, inasmuch as, in the covering letter for the refund claim, the appellant expressly described the claim as one "for the refund of service tax already deposited by us during the year 1997-98". In that letter, he also admitted the applicability of the limitation provisions of Section 11B of the Central Excise Act to the refund claim. In view of these facts, we do not see any sense in the appellant's present disclaimer of Section 11B ibid.

The refund claim was filed on 4-8-98, admittedly after the expiry of six months from the dates of payments of the service tax amounts. The claim was, thus, barred by limitation under Section 11B of the Central Excise Act, there having been no case for the appellant that the service tax was paid under protest.

Limitation on service tax refunds: late claims are barred unless tax was paid under protest. Refunds of amounts paid as service tax are governed by the statutory limitation provisions; where payments were credited to the service tax account and the claimant acknowledged applicability of the limitation rule, a refund claim filed after the limitation period is barred unless the tax was paid under protest.