Refund arises out of Excise Duty Demand Deletion must be Claimed through Separate Statutory Procedure, Not Before Tribunal: CESTAT [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that refund issues arising out of the deletion of excise duty demand must be claimed through a separate statutory procedure and the same cannot be claimed or appealed for before the tribunal.

The appellant, Jeevan Diesels and Electricals Limited, a company from Bangalore, challenged the Order-in-Orginal dated 30.11.206 and 24.10.2016 which imposed excise duty demand before the Commissioner (Appeals). The First Appellate Authority/Commissioner of GST and Central Excise (Appeals-II), Chennai, deleted all the additions made to the Order-in-Original and deleted the demands and the penalty.

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Then, the petitioner filed a writ petition before the tribunal, praying for a refund of Rs. 15,35,738 with interest as the facts in the order showed demands were frivolous and the litigation was thrust on them.

K. S. Jain, Managing Director of the appellant-company appeared in person and G. Kriupa (Superintendent) appeared for the Revenue, as both sides were heard and placed on record.

The two-member bench comprising P. Dinesh (Judicial) and Vasa Seshagiri Rao (Technical) perused the impugned order and documents placed before them. The tribunal observed that the First Appellate Authority already deleted all the demands and the penalty.

Going into the prayer, the tribunal observed that any refund claim arising as a consequence of an order must be pursued through separate proceedings. It added that CESTAT cannot go into the issue of the refund. The tribunal did not see any justification for entertaining this appeal.

The appeal of the appellant was dismissed.

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