2015 (5) TMI 416 - HC - Service Tax

Denial of refund claim - Wrong entry of credit from the account of a different assessee - Held that - while making e-payment, the petitioner company has wrongly mentioned its assessee code as AABCS5320JXM001 instead of AABCS5320HXM001 wherein one letter viz., J has been wrongly mentioned instead of H . Therefore, the department has given credit of the said amount from the company which has the assessee code as AABCS5320JXM001 which is not in existence as of now. Apart from that, admittedly, the petitioner has made the payment twice. In view of the above said position, the petitioner is entitled to get refund of the payment wrongly made on 06.11.2014 - Decided in favour of assessee.

Summary

Issues:
Challenge to impugned communication and direction to refund the sum of Rs. 15,00,000 towards wrongly made payments by petitioner in Assessee Code AABCS5320JXM001.

Analysis:
The petitioner, a manufacturer of rubber products, challenged a communication from the respondent directing a refund of Rs. 15,00,000 due to a payment error made towards excise duty. The petitioner mistakenly used the wrong assessee code, resulting in the payment being credited to a different company, M/s.SURI IMPEX. Despite rectifying the error promptly and seeking a refund, the respondent issued a notice for explanation and a personal hearing. The petitioner contended that M/s.SURI IMPEX no longer existed and had provided a No Objection letter. The respondent's counter stated that M/s.SURI IMPEX confirmed the erroneous payment and had no objection to refunding the amount. The petitioner also submitted an indemnity bond to cover any potential loss to the department.

The court acknowledged the error in the assessee code provided by the petitioner, leading to the incorrect crediting of the payment to another entity. It was noted that the petitioner had made the payment twice to rectify the mistake. Considering these circumstances, the court ruled in favor of the petitioner, directing the respondent to refund the erroneously made payment within two weeks. The judgment concluded by disposing of the Writ Petition without imposing any costs and closing the connected miscellaneous petition.