2016 (12) TMI 206 - AT - Central Excise

Refund claim u/r 5 of Cenvat Credit Rules, 2004 - manufacturer of 100% blended yarn during the period January, 2010 to March, 2010 - export of goods - whether the denial of refund on the ground that as the refund is more than ₹ 5lakh, the certification from the chartered accountant required, is justified? - Held that - The appellant has been able to produce the certification of documents from the chartered accountant for entertaining the refund claim, therefore, the same is required to be examined by the adjudicating authority. In that circumstance, the impugned order is set aside and the appeal is allowed by way of remand to the adjudicating authority for verification of the documents done by the chartered accountant or not. If the adjudicating authority found that the documents filed by the appellant in respect of their refund claim have been certified by the chartered accountant, in that circumstance, the appellant is entitled for refund claim - appeal allowed by way of remand.

Summary

Issues:
Appeal against rejection of refund claim under Rule 5 of Cenvat Credit Rules, 2004 due to lack of chartered accountant certification for refund exceeding ?5 lakh.

Analysis:
The appellant, engaged in manufacturing 100% blended yarn, exported goods during January to March 2010 and filed a refund claim for accumulated credit in their cenvat credit account. Initially, the claim was rejected for not providing documents. On appeal, the Commissioner (Appeals) rejected the claim as it exceeded ?5 lakh, necessitating certification from a chartered accountant. The appellant contested this decision, arguing that while certification is not mandatory, they had obtained it in this case. The Authorized Representative for the appellant asserted that all documents were duly certified by a chartered accountant, seeking to set aside the impugned order and allow the appeal with consequential relief.

Upon hearing both parties and evaluating their submissions, it was noted that the appellant had indeed obtained certification of documents from a chartered accountant to support their refund claim. Consequently, the impugned order was overturned, and the appeal was allowed, remanding the case to the adjudicating authority for verification of the chartered accountant's certification on the documents. If the authority confirms that the documents submitted by the appellant were certified by a chartered accountant, the appellant would be entitled to the refund claim. The appeal was thus disposed of accordingly, with the decision dictated and pronounced in court.