Limitation period on CENVAT Refund claim can only be calculated based on dates of realisation of Export proceeds and Filing of Refund, ordered to submit relevant Document: CESTAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Chennai bench have held that the limitation period on CENVAT refund claim can only calculate based on dates of realisation of export proceeds and filing of refund and ordered to submit the relevant documents for that.

Shri K. Sivarajan appeared for the Appellant and Shri Vikas Jhajharia appeared for the Respondent.

The appellants M/s. Vestas Technology R&D Chennai Pvt. Ltd engaged in exporting services like Consulting Engineering, Maintenance and Repair and Business Support Services for which they availed Cenvat credit on various inputs services. Refund claimed under Rule 5 of Cenvat Credit Rules, 2004 read with Notification No.27/2012–CE (NT)as they could not utilize the accumulated Cenvat credit.

The department rejected the refund claim on the ground that they have been filed beyond one year of the date of invoice. The appellant contended that the limitation reckons from the end of the quarter in which the proceeds of export have been realized.

It was observed that the appellant failed to produce documents to prove that the claims filed by the appellants and the Tribunal were unable to verify the claim that the respective refund applications have been filed within one year of realization of the export proceeds in the relevant quarter. 

Ms Sulekha Beevi, JM and Mr P Anjani Kumar, Technical Member held that “for the limited purpose of verification of the relevant dates of realization of export proceeds and the dates of filing of the refund claims, the matter should go back to the original authority to verify the same and to grant an applicable refund to the appellants in the light of the principle laid down by the Larger Bench in the case of M/s. Span Infotech”.

The Tribunal remanded the matter to the original authority for verification and allowed the appeal. 

To Read the full text of the Order CLICK HERE

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