2020 (12) TMI 415 - AT - Central Excise

Recredit of amount already reversed - Section 142(3) of the CGST Act 2017 - HELD THAT - It is a fact on record that when the appellant filed the refund claim of cenvat credit reversed by them, it was not the issue but with the introduction of CGST Act 2017, the issue of re-credit was arise in terms of Section 142 (3) of the CGST Act 2017 and the appellant was having no occasion to raise the issue of the re-credit before the adjudicating authority as the adjudicating authority itself has passed the impugned order after introduction of CGST Act 2017. Moreover, the issue of entitlement of re-credit is a legal issue and the same may be raised in the case proceedings. The appellant is entitled to recredit of the amount already reversed before introduction of CGST Act 2017 - Appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against rejection of refund claim in deemed export case
- Entitlement to re-credit of cenvat credit under CGST Act 2017

Analysis:
1. The appellant appealed against the rejection of their refund claim in a deemed export case under provisions effective from 01.03.2015.
2. The appellant's counsel argued that they had reversed certain cenvat credit while filing the refund claim. An amendment introduced the CGST Act 2017 before the adjudication order, preventing them from raising the issue of re-credit. Citing Section 142(3) of the CGST Act 2017, they claimed entitlement to cash refund or re-credit, supported by a previous Tribunal ruling.
3. The respondent's representative contended that the appellant was not entitled to the refund and that the issue of re-credit was not raised before the Tribunal for a decision.
4. After hearing both parties, the Tribunal considered the submissions.
5. The Tribunal noted that the issue of re-credit arose due to the introduction of the CGST Act 2017 after the appellant filed the refund claim. As the issue was not raised before the adjudicating authority, the appellant was entitled to raise it in the appeal proceedings. The Tribunal referenced a previous case where re-credit was allowed under Section 142(3) of the CGST Act 2017.
6. Consequently, the Tribunal held that the appellant was entitled to re-credit the amount previously reversed before the introduction of the CGST Act 2017.
7. The appeals were disposed of accordingly.