Time-limit of section 11B applies to service tax paid by mistake, if assessee makes an application for refund under section 11B

Service Tax : Time-limit of section 11B applies to service tax paid by mistake, if assessee makes an application for refund under section 11B
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[2014] 51 taxmann.com 564 (Karnataka)
HIGH COURT OF KARNATAKA
M.C.I. Leasing (P.) Ltd.
v.
Commissioner of Central Excise, Mysore*
N. KUMAR AND RAVI MALIMATH, JJ.
CEA NO. 21 OF 2009†
SEPTEMBER  22, 2011
Section 11B, of the Central Excise Act, 1944, read with section 83 of the Finance Act, 1994 and section 27, of the Customs Act, 1962 - Refund - Period of Limitation - Assessee was registered as a service provider and voluntarily paid tax on 'interest earned' - Later, on realizing that it was not liable to pay tax, it filed refund claim under section 11B - Department disallowed a part of refund claim barred by limitation - Assessee argued that time-limit of section 11B was not applicable to service tax paid by mistake - HELD : All refund claims (except those claimed on ground that provision/ law under which tax is levied is declared unconstitutional) have to be and must be filed and adjudicated under provisions of Finance Act/Central Excise Act - Moreover, since assessee had chosen to file refund claim under section 11B, time-limit of section 11B was applicable and provisions of general law stood automatically excluded - Since tax was not paid under protest, time-limit of 1 year was applicable and denial of refund claim beyond 1 year was valid [Paras 4 to 6] [In favour of revenue]