2021 (5) TMI 930 - HC - Central Excise

Refund of alleged excess amount of the money refunded earlier to the petitioner towards excise duties - HELD THAT - It is directed that the respondent No.2, i.e., Commissioner, Central Goods and Service Tax, Guwahati shall dispose of the representations submitted by the petitioner including the one dated 05.02.2021 for fixation of special rate within four weeks from the date of receipt of a certified copy of this order. It is also directed that till such decision is taken by the authorities on consideration of the representation(s) submitted by the petitioner, the authorities shall not take any coercive action against the petitioner pursuant to the demand notice dated 01.01.2021 challenged in this writ petition. List along with WP(C) No.2566/2021 on 14.07.2021.

Summary

Issues: Challenge of demand notice for refund of excess amount; Failure to consider special rate benefits; Pending similar writ petitions for relief against demand notices.

In this judgment by the High Court, the petitioner challenged a demand notice issued by the respondent seeking a refund of an alleged excess amount previously refunded towards excise duties. The petitioner contended that they were entitled to special rates for benefits due to exemption of excise duty granted to industries in Assam for industrial development. Despite repeated representations, the authorities did not consider the petitioner's entitlement to these benefits and sought to recover the refunded amount. The petitioner filed a writ petition against the demand notice dated 01.01.2021.

The petitioner's counsel highlighted that similar writ petitions were pending before the Court, seeking relief against demand notices for refund issued to industries. Reference was made to an interim order in another case where the Court directed the Commissioner of CGST to decide on the application for special rate fixation within four weeks and instructed no coercive measures be taken until a decision was made. The petitioner sought similar interim relief, which the Standing Counsel for GST did not oppose.

Consequently, the Court directed the Commissioner of CGST to dispose of the petitioner's representations for special rate fixation within four weeks and instructed no coercive action be taken against the petitioner until a decision was reached. The case was listed for further proceedings along with another related petition. The Court proceedings were conducted via video-conference, and both parties' counsels were heard. The Court issued notice returnable within six weeks, and as the Standing Counsel for GST accepted notice on behalf of all respondents, no formal steps were required for service. The matter revolved around changes in excise duty rates impacting industries in Assam and the petitioner's entitlement to special rates for benefits, leading to the challenge against the demand notice for refund.