Time Limit for claiming refund under Notification 41/2007 ST dated 6.10.2007 – Please clarify clarification
WE are getting a large number of mails from worried exporters and more worried consultants on the subject.
Notification 41/2007 ST dated 6.10.2007 allowed refund of service tax paid on certain services used by the exporters of goods. As per the procedure given in the Notification, the refund claims are to be filed on quarterly basis within six months from the date of export.
The time limit for claiming the refund has been clarified by the Board vide Circular No 112/2009 as under:
It is clarified that consequent upon revision of limitation period, any refund claim that is filed within such revised limitation period would be admissible if it is otherwise in order. Therefore, refund claims of service tax on specified taxable services used for exports of goods made in the quarter Mar-Jun 08 could be filed till 31 st Dec 08.
However, the clarification given in the same table at Sl No IV reads:
It is clearly prescribed in the notification that limitation period of six month is to be computed from the date of exports.
So, some officers are interpreting that the refund claims filed beyond six months of the date of export are barred by limitation. Thus the claim for the goods exported in March 2008, if filed in the month of October 2008 would be time barred. However, this view is contrary to the clarification given at Sl No I which clearly stated that the claim could be filed till 31 st Dec 2008.
Apparently, the clarification at Sl No IV of the table that the limitation period of six months to be computed from the date of export is only meant to clarify that the date of receipt of remittances is not relevant for computing the limitation, as can be seen from the column “issue raised”.
In any case, it would be appropriate for the Board to resolve the confusion in the minds of the concerned officers.
Fortunately, the refund is now governed by Notification No. 17/2009 ST (after rescinding of Notification 41/2007 ST) which clearly stipulated the time limit as one year from the date of export.