REFUND CLAIM IN SERVICE TAX

 The claim for
refund may also arise due to rectification of mistake under Section 74, upon
finalization of provisional assessment resulting in a refund under Rule 6(6) or
excess payment of service tax by assessee entitling him to claim refund or
under Rule 6(3) in case of self adjustment. 
 
Form R of
Central Excise Rules, 1944 is used for claiming refund under Rule 173 S of
Central Excise Rules, 1944. It should be submitted to the Assistant or Deputy
Commissioner of Central Excise, as the case may be. The assessee should prove
that the incidence of duty has not been passed on to the buyer or any other
person. This restriction of ‘unjust enrichment’ is applicable to Service Tax
also. Assessees should comply with the following requirements – 
 
(a). Claim for
refund must be in prescribed Form-R of Central Excise Rules in duplicate. 
 
(b). It should
be signed and pre-receipted with a revenue stamp. 
 
(c). It should
be filed within the limitation period of one year from the date of payment of
tax. 
 
(d). Proof
should be submitted that refund will not result in unjust enrichment. 
 
(e). Appeal can
be preferred against order denying the refund. 
 
The refund
claim should be backed by adequate documentary evidence(s) of payment of
Service Tax, excess payment, refund due etc. 
 
The claim
should be filed along with all requisite papers and documents and if the same
is incomplete, it may not be taken as filed properly. The refund can be granted
only if then incidence of tax has not been passed on to any other person
because being an indirect tax, it is assumed that the assessee who has paid the
tax on a service has passed it on to the recipient of service. The onus of
proof that the burden of tax was not passed to any other person lies on the
claimant of such refund. All the refunds are issued by cheques are delivered to
the claimant or his representative either personally against a proper
acknowledgement or dispatched by registered post acknowledgement due.
 
CIRCUMSTANCES IN WHICH REFUND COULD BE CLAIMED
  
1. On
finalization of provisional assessment [Rule 6(4) of Service Tax Rules, 1994] 
 
2. On making
excess payment of Service Tax 
 
3. On rectification
of mistake 
 
4. On payment
of Service Tax on advance receipts against which service is not provided later
[Rule 6(3) of Service Tax Rules, 1994] 
 
5. On payment
of service tax under section 73A (surplus amount collected from customer and is
refunded to customer after adjustment) 
 
6. In case of
exemption notification 
 
7. Where
manufacture or service provider is not in a position to utilize the credit on
input or input service under Cenvat Credit Rules, 2004 (Rule 5). 
 
8. Refund of
Cenvat Credit to service providers providing services taxed on reverse charge
basis (Rule 5B of Cenvat Credit Rules, 2004). 
 
9. Refund by
merchant/manufacturer exporters (exemption by way of refund). 
 
10. Under
Export of Service Rules, 2005/Rule 6A of Service Tax Rules, 1994 w.e.f.
1-7-2012. 
 
11. Refund of
Service Tax to SEZ developers/units to SEZ. 
 
RELEVANT DATE FOR COMPUTING LIMITATION PERIOD OF ONE
YEAR
 
 
Relevant date
for ascertaining time limit of one year is as under – 
 
 

  CIRCUMSTANCES

 
RELEVANT DATE
 
 
Under normal circumstances
 
Date on which payment of Service Tax was
made
In case of provisional assessment
 
 
Date on which adjustment of Service Tax
after final assessment was made i.e. date of final assessment
 
 
 
In case of person who is not service
provider
 
 
Date on which taxable service was
purchased
 
 
 
In case of rectification of mistake
(exempting a particular service)
 
Date on which exemption notification was
issued
 
The “relevant
date” for the purpose of refund as per section 11B of the Central Excise Act,
1944 which is applicable to Service Tax also, is the date payment of Service
Tax. Thus, the limitation period of one year is to be calculated from the date
of payment of the Service Tax.
 
PROCEDURE FOR CLAIMING REFUND
 
Any assessee,
manufacturer/exporter, who is entitled for refund of any duty of excise due
paid on account of excess paid, erroneously duty paid or double excise duty
paid. The assessee can submit refund claim with prescribed form to their
jurisdictional Deputy Commissioner / Assistant Commissioner of Central Excise
with a copy to the Range officer of Central Excise. The assessee has an option
to file refund claim electronically through ACES online and submit the hard
copies along with necessary documents to the Department for verification. The
claim is to be submitted in duplicate duly signed by the authorized person on
behalf of the claimant and shall affix revenue stamp in space provided for pre-receipted
in the application form. 
 
The refund
claim shall be submitted along with all requisite documents and proof of excise
duty paid by the assessee and enclosing a disclaimer certificate about
non-availment of Cenvat credit or any other benefits as buyer of the excisable
goods. If the burden of duty has been passed on, the refund can be claimed by
the person who actually paid the duty otherwise the amount is liable to be
deposited in the Consumer Welfare Fund. The refund claim of less than ₹ 100 shall not be admissible in respect of
all excisable goods 
 
Assessee’s
should note the following:- 
 
(i) Application
in the prescribed form (Form-R) should be filed in duplicate with the
jurisdictional Asst./Deputy Commissioner of Central Excise/Service Tax.
 
(ii) The
application should be filed within one year from the relevant date as
prescribed in Section 11B of the Central Excise Act, 1944 which has been made
applicable to Service Tax refund matters also.
 
(iii)
Application should be accompanied by documentary evidence to the effect that the
amount claimed as refund is the amount actually paid by him in excess of the
Service Tax due and the incidence of such tax claimed as refund has not been
passed on to any other person.
 
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