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Relevant date for calculation of time limit of 1 year for CENVAT credit refund shall be the date of export invoice.
Facts
The Appellant filed claim for refund of accumulated CENVAT credit on account of export of services. Department rejected the claim as time barred under section 11B of the Central Excise Act, 1944 (CEA). The Appellant contended that section 11B is applicable only to the refund of duty and interest whereas refund of CENVAT credit is governed by Rule 5 of CENVAT Credit Rules which does not prescribe any such time limit. Furthermore, it was contended that they have filed the refund claims within one year of the quarter-ending, pertaining to the quarter for which refund claims were made and also claimed that relevant date shall be the date of export invoice. Respondent contested that procedure for refund of CENVAT credit has been prescribed vide notification no. 27/2012-CE(NT) dated 18/06/2012, issued under Rule 5 of CENVAT Credit Rules, 2004 wherein time limit as per section 11B is made applicable for refund of CENVAT credit.
Held
Time limit of one year is applicable to refund of CENVAT credit. Analysis of decision on the subject matter revealed that CENVAT credit though not a duty but has been equated with duty since section 11B is made applicable to refund of CENVAT credit. The relevant date for filing of refund claim would be the date of export invoice, being the date when cause for refund has arose and time limit of one year shall be reckoned from the said date.
