In a recent ruling, the Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) directs a refund of untransitioned excess CENVAT credit amounting to Rs. 30.52 lakh.
In this case, the appellant, M/s Lupin Limited, Aurangabad, had approached the CESTAT against the Order-in-Appeal passed by the Commissioner (Appeals), GST & Central Excise, Nashik.
The appellant, M/s Lupin Limited, is engaged in the manufacture of pharmaceutical products. They are a manufacturer of excisable commodities and have been submitting regular Central Excise returns. In accordance with the CENVAT Credit Rules, 2004 (CCR), the appellants additionally took advantage of CENVAT credit for the duty paid on inputs, capital goods, and input service taxes.
For the month of June 2017, the appellants had filed the original ER-1, a monthly return for production and removal of goods and other relevant particulars including CENVAT credit, on 10.07.2017, indicating admissible CENVAT credit of Central Excise Duty and Service Tax.
Get a Copy of Income Tax Rules, Click here
Later on, for the month of June 2017, the appellants had filed a revised ER-1 on 31.07.2017. This indicated admissible CENVAT credit of Central Excise Duty and Service Tax for an additional amount of Rs. 30,52,536/- on input, capital goods, and input services, which were not claimed in the earlier pre-revised return filed by them.
They claimed they are entitled to a refund under Section 142(9)(b) of the Central Goods and Service Tax Act, (CGST) 2017, since, the total additional CENVAT credit of Rs. 30,52,536/- was not transitioned as CGST credit in FORM GST TRAN-1.
The above refund claim was rejected by the original authority. The appellants, who were aggrieved by the above order-in-appeal dated 13.01.2020, approached the CESTAT for relief.
The counsel on behalf of the appellant contended that by virtue of Section 142(9) of the CGST Act, 2017, the appellants should be entitled to claim a refund of the CENVAT credit as in the present case, the CENVAT credit of Rs. 30,52,536/- became admissible pursuant to the filing of a revised Central Excise return within the time limit.
The bench noted that in the case of M/s Clariant Chemicals India Limited v. Commissioner of Central Excise & Service Tax, Raigad in which the refund of excess CENVAT credit under the transitional arrangement under Section 142 of the CGST Act is permissible.
Get a Copy of Income Tax Rules, Click here
The CESTAT bench comprising M.M. Parthiban held that the impugned order passed by the Commissioner (Appeals) is meritless as it does not stand the scrutiny of law. The bench set aside the order and allowed a refund of excess CENVAT credit of Rs.30,52,536/- payable to the appellants.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
