No Limitation on Refund of Personal Ledger Accounts deposit: CESTAT allows Refund [Read Order]

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Chandigarh Bench has held that there is no limitation on refund of Personal Ledger Accounts deposit (PLA) and allowed the refund.

The appellant challenged the Order-in-Appeal dated 17/01/2022 passed by the Commissioner (Appeals) by which the learned Commissioner rejected the refund claim of the appellant being time-barred.

The appellant, M/s. Reckitt Benckiser Healthcare India had a PLA balance of Rs.5,83,392/- in their Central Excise Accounts as of 30/06/2017 and applied for a refund of the aforesaid PLA balance with the DC, CGST Division after more than one year from the relevant date.

The Adjudicating Authority rejected the refund on the ground of being time-barred under section 11B (1) read with section 142(3) of CGST Act, 2017. The Commissioner also rejected the appeal on the ground of limitation and held that the appeal has been filed much belatedly and otherwise under the limitation Act, 1963.

It was observed in the case of In the matter of Fluid Controls Pvt. Ltd. V/s. CCE & ST, 2018 held that “the PLA deposits are mere deposits for their utilisation in the future and the same is not the duty, in which case the provision of section 11B would not apply and if the same is not in a position to utilise, the depositor has to be held as the owner of the said amount which is required to be refunded to them in the absence of any limitation prescribed under the Act for such refunds.”

In the light of the precedent, Mr Ajay Sharma, Judicial Member viewed that the appellant is eligible for the refund claim of unutilized balance lying in their PLA (Personal Ledger Accounts) and allowed the appeal.

Shri Nikhil Gupta appeared for the Appellant and Shri Amandeep Kumar appeared for the Respondent. 

To Read the full text of the Order CLICK HERE

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