Rejection of Excise Duty Refund claim deposited under Protest is liable to be Refunded: CESTAT [Read Order]

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that the rejection of excise duty refund claim deposited under protest is liable to be refunded.

The present appeal is directed against the impugned order dated 21.02.2018 passed by the Commissioner (Appeals) deciding two appeals of the appellant whereby the Commissioner (Appeals) has allowed the appeal against the demand of interest and imposition of penalty upon the appellant but upheld the Assistant Commissioner order rejecting the refund claim of Rs. 19,55,010/-.

T.R. Rustagi, the counsel who appeared for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without appreciating the facts of the case and the law and the binding judicial precedents. He further submitted that the order passed by the Commissioner (Appeals) upholding the denial of refund of Rs. 19,55,010/- by the Assistant Commissioner is illegal.

It was further submitted that while in the case of demand of interest, the Commissioner considered the timely issue of demand notice as a legal necessity but failed to apply the same principal of law in the case of refund of duty paid (under Protest) by the appellant.

On the other hand, the AR reiterated the findings of the impugned order and submitted that the letter dated 29.04.2016 issued by the Assistant Commissioner is itself an order rejecting the refund against which the appellant has right to file the appeal and in fact the appellant has filed the appeal before the Commissioner against this letter.

A Single Bench of SS Garg, Judicial Member observed that “I am of the considered opinion that the rejection of refund claim of Rs. 19,55,010/- deposited by the appellant under protest is liable to be refunded to the appellant as prescribed by the law, accordingly, I allow the appeal of the appellant and direct the Revenue to refund the said amount along with interest as prescribed by law. Appeal is accordingly, allowed.”

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