CESTAT grants Cash Refund claims of Unutilized CENVAT Credit during Pre-GST regime [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (ITAT), Mumbai bench has granted cash refund claims of unutilized CENVAT Credit during the pre-GST regime.

The appellant, M/s Oil States Industries India Pvt. Ltd. had filed a refund claim application for a refund of accumulated CENVAT Credit. The application was rejected as time-barred by the Original Authority without any notice being sent to the Appellant. The appellant preferred an appeal before the Commissioner of Central Excise (Appeals), which dismissed the appeal.

Then the appellant went on appeal before the CESTAT. The respondent department submitted that since the issue relating to the CENVAT Credit refund claim under CGST Act, 2017 and jurisdiction of CESTAT had been referred to the Larger Bench by the Chennai Bench of CESTAT in M/s. Bosch Electrical Drive India Pvt. Ltd., hearing of this appeal may be deferred till the issue is settled by the Larger Bench.

The appellant’s counsel submitted that the appellant has not challenged the legality of the rejection of its refund application but only sought for re-credit of the debited CENVAT Credits after final confirmation by the Commissioner (Appeals) of its refund application rejecting the refund sought against accumulated CENVAT Credits on exports, but unfortunately, no finding is available to the order passed by the Commissioner (Appeals) with reference to the judgment by the Chennai Bench of CESTAT in M/s. Bosch Electrical Drive India Pvt. Ltd.

The Coram of Mr. Dr. Suvendu Kumar Pati, Member (Judicial) has observed that as per Section 11 of the CPC if any relief is sought from the Court of Law and it is not expressly granted, it is deemed to have been refused. Therefore, the appellant has got every right to prefer an appeal before the Tribunal against the deemed refusal and to get the relief to which it is entitled otherwise also.

The Tribunal observed that “I am, therefore, of the considered view that Appellant is entitled to get a cash refund of Rs.35,52,543/- with applicable interest, if any, against CENVAT Credit available to its credit during pre-GST regime as per provision contained in Section 142(3) of the CGST Act”.

Mr. Anil Mishra and Mr. Sanjay Hasija appeared on behalf of the appellant and respondent respectively.

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