2019 (1) TMI 249 - HC - Central Excise

Implementation of order - refund claim allowed - low tax effect - Held that - The appeal deserves to be dismissed on the ground of low tax effect and the substantial questions of law are left open - the appellant is directed to implement the direction issued by the Tribunal - appeal dismissed.

Summary

Issues: Appeal against Tribunal order, direction to implement Tribunal order for refund claim.

Analysis:
1. The appeal was filed by the Revenue against the order of the Customs, Excise and Service Tax Appellate Tribunal, Southern Zonal Bench, Chennai, which had allowed the appeal filed by the respondent assessee.

2. The Revenue decided to withdraw the appeal due to low tax effect, leaving the substantial questions of law framed for consideration open for future cases. The appellant was permitted to withdraw the appeal for this reason.

3. The respondent/assessee requested a direction to the appellant to implement the Tribunal's order, which stated that the respondent's claim for refund was admissible. The Tribunal had remanded the matter to ascertain the correct amount of eligible accumulated credit due to the closure of the assessee's activities in Puducherry.

4. The Standing Counsel for the appellant opposed issuing consequential directions, arguing that it could set a wrong precedent. However, the court decided to issue directions due to the peculiar circumstances of the case, noting the closure of the assessee's activities and the timing of the refund application.

5. The court dismissed the appeal on the grounds of low tax effect, leaving the substantial questions of law open. It directed the appellant to implement the Tribunal's order regarding the refund claim, emphasizing that the unutilized credit due to factory closure should not be denied solely based on procedural requirements.

6. As the respondent had closed down the factory, the appellant was instructed to assign the files to an officer with jurisdiction to implement the Tribunal's directions regarding the refund claim.

7. Ultimately, the appeal was dismissed with no costs awarded.