CESTAT grants Refund of CVD and SAD under Central GST Act [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has granted refund of SAD and CVD as credit is no longer available under the GST regime, which was however available under the erstwhile regime of Central Excise prior to 30.06.2017.

The appellant, New Age Laminators Private Limited, are engaged in manufacture of Automotive Metalised Polyester Laminated Craft Paper.The appellant approached the authorities for refund contending that they deposited the duties after implementation of GST, therefore they are not eligible to claim cenvat credit of CVD and SAD. According to them, as there is no provision in GST to avail input credit of the duties paid for regularization of bonafide default under Advance authorisation (relating to erstwhile regime of Central Excise), they are eligible for refund.

However, the claim was rejected by the department.

Judicial member Anil Chaudhary found that the payment of CVD and SAD subsequently during GST regime, for the imports made prior to 30.06.2017 is not disputed under the advanceauthorisation scheme.

“It is also not disputed that the appellant have paid the CVD and SAD in May, 2018 & May, 2019, by way of regularization on being so pointed out by the Revenue Authority. Further, I find that the Court below have erred in observing in the impugned order, that without producing proper records of duty paid invoices etc. in manufacture of dutiable final product, refund cannot be given. I further find that refund of CVD and SAD in question is allowable, as credit is no longer available under the GST regime, which was however available under the erstwhile regime of Central Excise prior to 30.06.2017. Accordingly, I hold that the appellant is entitled to refund under the provisions of Section 142(3) and (6) of the CGST Act,” the Tribunal said.

To Read the full text of the Order CLICK HERE

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