1 year time limit to claim refund under Rule 5 of CCR reckoned from the date of receipt of export proceeds and not from date of export of services

Last updated: 12 April 2016

Court :
CESTAT of Bangalore

Brief :
The Hon’ble CESTAT, Bangalore held that although there is no specific 'relevant date' under Section 11B of the Excise Act to claimrefund of unutilized credit, but, that would not rule out applicability of Section 11B. Relevant date should be the date of export. Since, as per Rule 3(2) of erstwhile Export of Services Rules, 2005, export of service is complete when consideration for same is received from foreign buyers, hence, relevant date would be 'date on which consideration for exported service is received'. Thus, matter was remanded back for allowing refund falling within 1 year from date of receipt of consideration.

Citation :
Infosys Technologies Ltd. Vs. Commissioner of Service Tax, Bangalore [2016 (67) taxmann.com 313 - CESTAT BANGALORE]