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2018 (12) TMI 1118 - HC - Service TaxRefund claim of service tax - validity of period of limitation of 6 months - exemption grated with retrospective effect - vires of Section 103 of the Finance Act, 1994 - Construction of Port Services - N/N. 25/2012ST dated 20.06.2012. Held that:- Section 103 was introduced in the Finance Act, 1994 with a specific purpose of granting exemption from service tax of certain services with retrospective effect. This covers the period between 01.04.2015 to 29.02.2016. Since this exemption was granted with retrospective effect, the question of refund would arise. It is in this context, subsection (2) of Section 103 envisages refund of the tax already collected and deposited. Subsection (3) however, provides a limitation of making refund application and as noted starts with nonobstinate clause. The period of limitation of six months for making the refund application is, therefore, notwithstanding anything contained in the chapter, in which the said provision is contained. Section 103 of the Act is thus a complete mechanism for recognition of exemption, refund of the tax so exempted with retrospective effect and the mechanism for claiming such refund. Such limitation period cannot be interpreted as merely directory, particularly when subsection (3) in addition to providing the period of limitation, overrides any other provisions of the chapter, which may be to the contrary. Courts have often hold that period of limitation for claiming refund is mandatory - Further, the contention that subsection (3) of Section 103 retains the period of limitation of one year prescribed in the Excise Act and is aimed to protect such refund application which cover the period beyond such period, cannot be accepted. Petition disposed off.
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