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2024 (12) TMI 725 - HC - GSTJurisdiction of adjudicating authority u/s 142 (3) of the CGST Act to entertain the claim of refund - Refund of duty paid under advance authorisation due to non-fulfillment of export obligation - HELD THAT - Admittedly the assessee had paid the amount of CVD and SAD between the period August 2018 March 2019 by way of regularisation of shortfall in fulfilment of the export obligation. The Tribunal has relied on Section 142 (3) of the CGST Act and has held that the same provided that every claim for refund by any person before on or after the appointed day for refund of any amount of central value added tax credit/duty/tax/interest or any other amount paid under the existing law shall be disposed of in accordance with the provisions of the existing law. The Tribunal by taking into account the provisions of sub sections (3) (5) and (8A) of Section 142 of the CGST Act has held that the assessee is entitled to claim refund of CVD and SAD paid after the appointed day. Accordingly the assessee had been held to be entitled to refund of central value added tax credit of Rs. 3, 28, 75, 733/-. The aforesaid finding is in consonance with law and the same cannot be termed as perverse. No substantial question of law arises for consideration in this appeal. The appeal fails and is hereby dismissed.
Issues:
Appeal under Section 130 of the Customs Act, 1962 against the order of the Customs, Excise and Service Tax Appellate Tribunal, Hyderabad regarding refund of duty paid under advance authorisation due to non-fulfillment of export obligation. Jurisdiction of the adjudicating authority under Section 142 of the Central Goods and Services Tax Act, 2017 to entertain the claim of refund. Analysis: The appeal was filed by the Revenue against the order of the Customs, Excise and Service Tax Appellate Tribunal, Hyderabad, regarding the refund of duty paid under advance authorisation by the assessee due to non-fulfillment of export obligation. The assessee imported duty-free inputs under advance authorisation but could not fulfill the export obligation, leading to the payment of Central Value Duty (CVD) and Special Additional Duty (SAD) with CESS under the Goods and Services Tax (GST) regime. The issue arose as the assessee could not avail credit of the duties paid due to the change in regime to GST from July 1, 2017. The assessee filed an application under Section 142 (3) read with Section 174 of the CGST Act for refund, which was rejected by the adjudicating authority. The Tribunal allowed the appeal, stating that the assessee is entitled to claim a refund of the duties paid after the appointed day under Section 142 of the CGST Act. The Revenue argued that the adjudicating authority did not have jurisdiction under Section 142 of the CGST Act to entertain the claim of refund, citing Circular No.3/3/2017-GST dated July 5, 2017. However, the Tribunal held that every claim for refund of any amount paid under the existing law shall be disposed of in accordance with the provisions of the existing law, as per Section 142 (3) of the CGST Act. The Tribunal considered the provisions of sub-sections (3), (5), and (8A) of Section 142 and concluded that the assessee is entitled to claim a refund of the duties paid post the appointed day. The Tribunal's decision was deemed to be in accordance with the law, and no substantial question of law arose for consideration in the appeal. In conclusion, the High Court dismissed the appeal, upholding the Tribunal's decision that the assessee is entitled to a refund of the central value added tax credit. The court found no merit in the Revenue's arguments regarding the jurisdiction of the adjudicating authority under Section 142 of the CGST Act. The judgment emphasized that the Tribunal's decision was legally sound, and no costs were awarded.
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