By TIOL News Service

MUMBAI, DEC 26, 2017: THESE are appeals filed by the assessee against the orders passed by the Commissioner(A) rejecting the refund claims filed on the ground of their being time barred.

Inasmuch as the online refund claim filed by the appellant(s) was not recognized by the department.

Incidentally, in the Trade Notice No. 14/ST/2009-ST dated 17/9/2009 issued by Commissioner of Service Tax, Delhi, it was stated that using the software application called Automation of Central Excise and Service Tax (ACES) the user will be able to take registration on-line electronically, file statutory the returns, claims, intimation and permission/ refunds and request for provisional assessment and view and track the status of their documents online.

The Bench, therefore, issued Notice to the CBEC to show cause the reason why the procedure of online filing of refund application prescribed by CBEC Circular no. 14/ST/2009 (Commr. of ST, Delhi T.N) dated 17.09.2009 shall not be recognized to be the defined mode in the eyes of law, in absence of statutory recognition there of, when the aim of the Circular of the Board is to improve the taxpayer services, transparency, accountability and efficiency in the indirect tax administration.

The CESTAT explained that the notice is issued for the reason that non-recognition of the online refund claim filed by the appellant had caused hardship to the claimant. And it is high time for the Board to issue appropriate guidelines to the field to recognize the online refund claim through amendment to law to prevent unwarranted hardship of the claimants.

The Tribunal wished that the Board file its reply by 31.12.2017 to resolve the disputes which were pending on this count.

While mentioning that the Tribunal had taken a consistent view that the claim made on-line is tenable, the Bench also directed the jurisdictional Chief Commissioner to pursue the matter with the Board for an early resolution to the litigation.

In passing: Please also see 2017-TIOL-1542-CESTAT-DEL wherein the CESTAT held that the date of filing the refund claim electronically is to be taken as the date of filing refund claim and with reference to that date, the claim is not barred by time.

Thankfully, the GST law provides all this, well almost!

(See 2017-TIOL-4525-CESTAT-MUM)