2025 (3) TMI 1246 - AT - Service Tax

Relevant date for filing rebate claim - rebate claim made by the appellant is barred by limitation - no correlation regarding inward remittances - HELD THAT - The issue is no more res integra and considering the decision of the Tribunal in the matter of Volkswagen India Pvt. Ltd. 2015 (11) TMI 349 - CESTAT MUMBAI it was held that the relevant date for claiming the rebate claim is from the date of payment of service tax only - As regarding the eligibility of the appellant the claim was made only on 02.02.2009 against the payment of service tax made on 05.01.2008 for the period from April 2007 to June 2007. Fact being so the said claim is beyond one year over from the date of payment of service tax and it is barred by limitation. As regarding the claim for the period from July 2007 to September 2007 the due date for filing the rebate claim was on 05.02.2009 and considering the submissions of refund claim on 02.02.2009 it is within the time limit and appellant is eligible for the rebate. Conclusion - The relevant date for filing a rebate claim under the Export of Service Rules is the date of payment of service tax not the date of receipt of inward remittances. Appeal allowed in part.

Summary

ISSUES PRESENTED and CONSIDERED

The core legal questions considered in this judgment are:

• What is the relevant date for filing a rebate claim under Rule 5 of the Export of Service Rules, 2005, read with Notification No. 11/2005-ST dated 19.04.2005Rs.
• Whether the rebate claim made by the appellant is barred by limitationRs.
• Is there adequate correlation between the export services and the inward remittances to justify the rebate claimRs.

ISSUE-WISE DETAILED ANALYSIS

Relevant Date for Filing Rebate Claim

• Relevant Legal Framework and Precedents: The appellant's rebate claim is governed by Rule 5 of the Export of Service Rules, 2005, and Notification No. 11/2005-ST. The relevant legal provision for determining the limitation period is Section 11B of the Central Excise Act, 1944, as made applicable to service tax by Section 83 of the Finance Act, 1994.
• Court's Interpretation and Reasoning: The Tribunal considered the precedent set by the Tribunal in the case of Vodafone Mobile Services Limited vs. CST, New Delhi, which held that the time limit prescribed under Section 11B of the Central Excise Act, 1944, applies to rebate claims. The Tribunal also referenced the decision in the appellant's own case for a subsequent period, which determined that the relevant date is the date of payment of service tax.
• Application of Law to Facts: The Tribunal applied the one-year limitation period from the date of payment of service tax. For the period April 2007 to June 2007, the service tax was paid on 05.01.2008, making the rebate claim filed on 02.02.2009 time-barred. However, for the period July 2007 to September 2007, the service tax was paid on 05.02.2008, and the claim was filed on 02.02.2009, which is within the limitation period.
• Conclusions: The Tribunal concluded that the rebate claim for the period April 2007 to June 2007 is barred by limitation, while the claim for the period July 2007 to September 2007 is valid and allowed.

Correlation Between Export Services and Inward Remittances

• Key Evidence and Findings: The appellant provided documentation, including export invoices, bank certificates, and correlation certificates, to establish the link between the exported services and the inward remittances.
• Treatment of Competing Arguments: The Revenue argued that the claims were time-barred from the date of realization of inward remittances. However, the Tribunal focused on the date of payment of service tax as the relevant date for determining the limitation period.
• Conclusions: The Tribunal found that the appellant had adequately demonstrated the correlation between the export services and the inward remittances, supporting the validity of the rebate claim for the period within the limitation period.

SIGNIFICANT HOLDINGS

• Core Principles Established: The Tribunal reinforced the principle that the relevant date for filing a rebate claim under the Export of Service Rules is the date of payment of service tax, not the date of receipt of inward remittances.
• Final Determinations on Each Issue: The Tribunal partially allowed the appeal, granting the rebate claim for the period July 2007 to September 2007, while denying the claim for the period April 2007 to June 2007 due to the expiration of the limitation period.
• Verbatim Quotes of Crucial Legal Reasoning: The Tribunal stated, "The issue is no more res integra... the relevant date for claiming the rebate claim is from the date of payment of service tax only."

The Tribunal's decision clarifies the application of the limitation period for rebate claims under the Export of Service Rules and emphasizes the importance of the date of service tax payment in determining the timeliness of such claims.