Order date: 13 October 2022

Facts

• The appellant, M/s V V Titanium Pigments Pvt. Ltd., had filed refund claim of service tax paid on input service used for export of the manufactured goods in terms of Notification No. 41/2012-ST dated 29.6.2012. The refund was claimed for the period October 2013 to March 2014 and received by the department on 07.10.2014.
• As ordered by the department appellant produced relevant document and resubmitted the refund claim on 20.01.2015. The refund sanctioning authority sanctioned the refund to the appellant. Against such sanction, the department filed an appeal and Show Cause Notice was issued to the appellant proposing to recover the erroneously granted refund. The said refund claim was rejected as the one year limit is expired. 
• The appellant argued that the time ought to be computed from the date of original submission of the refund claim and not the date of resubmitting the claim after rectifying the documents.

Issue

• Whether the date of one year has to be computed from the date of resubmission of the refund claim or the date of original submission of the claim?

Order

• The Tribunal observed that the date of original submission has to be taken for computing the period of one year as it is the date on which the appellant has filed the claim initially.
• When the claim is returned for resubmission, the appellant is allowed to make the required rectification. On such score, it is held that rejection of the refund claim on the ground that the same is time-barred when computed from date of resubmission of the refund claim is erroneous and requires to be set aside.
• Hence the appeal is allowed.