Relief to Tata Consumer Products Ltd: CESTAT directs Central Excise Dept to re-consider Refund Claim [Read Order]

The Delhi bench of the CESTAT, in a major relief to Tata Consumer Products Ltd, has directed the central excise department to re-consider the refund claim of the Company.

Earlier, the Assistant Commissioner that the appellant was eligible for refund of Rs.13,95,891/-, but, however, sanctioned only an amount of Rs.10,60,268/- by rejecting the balance amount of Rs.3,51,648/. Before the authorities, the appellant argued that they had inadvertently mentioned the balance cenvat credit available as on the date of filing the appellant its refund claim as Rs.10,60,268/- as against the actual Rs.14,50,277/-. Being failed to secure relief from the authorities, the appellant approached the Tribunal.

Judicial member P Dinesha held taht though the appellate authority has taken note of the claim of the appellant as regards the inadvertent/clerical error, but has not accepted on the ground that the same was not brought to the notice of the adjudicating authority.

“It is not the case therefore that the error was not inadvertent, the rejection is for different reason and hence it is clear that the inadvertent error is bona fide and on this, the First Appellate Authority should have called a report from the adjudicating authority and then passed appropriate order as per law. I am therefore of the view it would meet the ends of justice if the matter is sent back to the file of the adjudicating authority who shall verify the inadvertent error which is not disbelieved by the First Appellate Authority, who shall also verify the closing balance in the cenvat credit as on the date of appellant’s claim, as appearing in the appellant’s books,” the Tribunal said.

“In view of the above, the impugned order is set aside and the appeal is allowed by way of remand. The adjudicating authority shall pass a speaking order as per my observations hereinabove, preferably within a period of 3 months considering the fact that the issue pertains to the period April 2015 to June 2015. While passing a speaking order as per my directions, the adjudicating authority shall give sufficient/reasonable opportunities to the appellant of being heard,” the Tribunal added.

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