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2024 (2) TMI 367 - AT - Central ExciseCash Refund of Customs Duty / CVD - appellant could not avail the Cenat Credit - Section 142(3) of the CGST Act, 2017 - Jurisdiction to entertain the refund claim - HELD THAT - The issue as to whether such matters of cash refund claimed under Section 142(3) could be decided by this Tribunal was before the Larger Bench in the case of M/S. BOSCH ELECTRICAL DRIVE INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CENTRAL TAX, CHENNAI 2023 (12) TMI 1145 - CESTAT CHENNAI-LB , decided by the Larger Bench on 21.12.2023. The Larger Bench had concluded that the CESTAT has the jurisdiction to take up the Appeals of such nature - the LB decision in the case of Bosch Electricals would be squarely applicable to the present appeals. This makes it clear that the only recourse available to the assessee who pay the Service Tax, Excise Duty in the form of CVD SAD or IGST or Excise Duty subsequently after 01.07.2017, is to get the refund in terms of Section 142(3) of the CGST Act 2017. So far as the case law cited by the Learned AR in respect of M/S. AUROBINDO PHARMA LTD. VERSUS COMMISSIONER OF CUSTOMS, CHENNAI II 2022 (5) TMI 394 - CESTAT CHENNAI and M/S. SERVO PACKAGING LIMITED VERSUS COMMISSIONER OF G.S.T. AND CENTRAL EXCISE, PUDUCHERRY 2020 (2) TMI 353 - CESTAT CHENNAI , Chennai Bench is concerned, in both these cases the decisions were given prior to the Larger Bench taking its clear view on this issue. Since the Larger Bench had taken the view that the only recourse available to the appellant is to get the cash refund in terms of Section 142(3) to claim cash refund, these two case laws are not applicable presently. Appeal allowed.
Issues Involved:
1. Refund claim for re-imported goods due to rejection by overseas importers. 2. Refund claim for differential Excise Duty paid after finalizing CAS-4 certificate. 3. Refund claim for custom duties paid due to non-fulfillment of export obligations. Summary: Issue 1: Refund Claim for Re-imported Goods The appellants exported goods on payment of Excise Duty and claimed a rebate. Some consignments were rejected by overseas importers and sent back, requiring the appellants to pay the initial rebate claim as CVD upon re-import. The appellants filed a refund claim under Section 142(3) of the CGST Act, 2017, as they could not take Cenvat Credit in the GST regime. The Tribunal remanded the matter to the Adjudicating Authority for verification of proper accounting and recording of the re-imported stocks before granting refunds. Issue 2: Refund Claim for Differential Excise Duty The appellants transferred goods between their units, initially paying Excise Duty and later paying differential Excise Duty after finalizing the CAS-4 certificate. As this differential duty was paid after 01.07.2017, the appellants could not claim Cenvat Credit in the GST regime and filed for a refund under Section 142(3) of the CGST Act, 2017. The Tribunal allowed the appeals and directed the refund with consequential relief. Issue 3: Refund Claim for Custom Duties The appellants imported raw materials under Advance Licenses but failed to fulfill export obligations, leading to the payment of customs duties (CVD + SAD as IGST) after 01.07.2017. They sought a refund under Section 27 of the Customs Act, 1962, as they could not claim Cenvat Credit in the GST regime. The Tribunal held that the appellants are eligible for cash refunds under Section 142(3) of the CGST Act, 2017, following the Larger Bench decision in Bosch Electricals India Pvt Ltd. The Tribunal allowed the appeals and directed the refund with consequential relief. General Observations: The Tribunal noted that the refund claims should have been directed to the appropriate authorities, and any jurisdictional issues should have been addressed by returning the claims to the appellants. The Tribunal emphasized that the only recourse for such refunds is under Section 142(3) of the CGST Act, 2017, and consistently upheld the eligibility for cash refunds in similar cases. The Tribunal disposed of all appeals accordingly.
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