2018 (9) TMI 980 - AT - Central Excise

Refund of amount deposited - implementation of order pending till date inspite of this Tribunal s categorical order - Held that - The Board have now appointed a common Adjudicating Authority vide Order No. 2/2018-CE dated 22.06.2018 - The appellant M/s J. V. Industries Private Limited and the other connected party M/s JSL Stainless Limited are directed to file their submissions/ representation before the respondent adjudicating authority on or before 15.10.2018. Thereafter, the ld. Respondent Commissioner shall fix the date of hearing - If the appellant is found to be entitled for refund pursuant to the adjudication order, the same shall be granted forthwith - The respondent Commissioner shall file the compliance report before this Tribunal and/or progress report otherwise, in the month of January, 2019 on or before 31.01.2019.

Summary

Issues:
Compliance of Final Order for refund claim denial, Pre-mature refund claim rejection, Refund claim adjudication denial on natural justice grounds, Tribunal's direction for refund, Delay in adjudication post-Tribunal's order, Non-compliance due to GST reorganization, Appointment of common Adjudicating Authority.

Analysis:
The appellant filed a miscellaneous application for compliance of Final Order No. 57983/2017 passed by the Tribunal, which set aside the original order and remanded the matter for fresh adjudication with cross-examination opportunity. The refund claim of the appellant was rejected as pre-mature during pending adjudication proceedings post-remand. The appellant insisted on refund citing legal precedents, but the Department denied the refund on natural justice grounds, stating the demand was set aside solely for procedural violations. The appellant appealed for the refund claim before the Commissioner, citing the pending re-adjudication proceedings as the reason for pre-mature refund. The Tribunal, considering previous orders and legal decisions, directed the adjudicating authority to decide as per its directions within two months, failing which the Department must refund the amount to the appellant.

The appellant, after receiving no response for months, applied for refund and release of bonds and guarantees, but the Department informed that the matter was still pending adjudication with the Commissioner. The concerned Commissioner's report cited reorganization due to GST implementation for the delay in adjudication. The Tribunal acknowledged the delay was not deliberate and directed the parties to file submissions before the adjudicating authority, fix hearing dates, and cooperate in the process. A common Adjudicating Authority was appointed by the Board, and the Tribunal gave directions for timely adjudication, refund if entitled, and compliance report submission by specific dates.

In conclusion, the Tribunal modified previous orders, directing the parties to submit representations, cooperate in the adjudication process, and set deadlines for the adjudicating authority to pass re-adjudication orders and grant refunds if applicable. The respondent Commissioner was instructed to file compliance reports, and the matter was scheduled for further hearing and compliance report submission on a specified date.