2018 (1) TMI 300 - AT - Central Excise

Refund of CENVAT credit - extended period of limitation - Held that - the claim of refund was filed by the assessee and on the amount paid by them for extended period of limitation which was held as not invokable in the facts of this case. In that circumstance, the assessee is entitled for the refund claim for the amount paid for the extended period of limitation which they have paid and the same has been rightly sanctioned to the assessee - as the assessee was not able to utilise the Cenvat credit account as their product become exempted from payment of duty, therefore, ld. Commissioner (Appeal) has rightly sanctioned the refund claim in cash. Interest of delayed refund - Held that - it is an admitted fact that refund claim filed by the assessee on 05.07.2013 has been allowed to them in their Cenvat account on 12.10.2015, which is more than three months from the date of filing of refund claim - the assessee is entitled to claim interest after three months from the date of filing of refund claims i.e. from 05.07.2013 till its realisation on 12.10.2015. Appeal dismissed - decided against Revenue.

Summary

Issues:
Refund claim sanctioned in Cenvat credit, interest on delayed refund, validity of refund claim.

Analysis:
The case involves an appeal where the assessee filed a refund claim after a tribunal order, which was later sanctioned by the adjudicating authority in the form of Cenvat credit. The assessee appealed for cash refund instead, leading to a dispute over interest for delayed refund. The Revenue appealed against the refund sanction, while the assessee cross-objected. The Revenue argued that the refund was premature due to an SLP pending in the Apex Court regarding the extended limitation period. However, the assessee contended that since no stay was obtained, they were entitled to the refund as per Tribunal decisions. The assessee also cited a High Court case allowing cash refund when unable to utilize Cenvat credit.

The Tribunal found that the extended limitation period was not invokable in this case, as the Revenue's challenge had no stay. Therefore, the assessee was entitled to the refund for the extended period paid. Additionally, since the assessee couldn't utilize the Cenvat credit due to product exemption, the Tribunal upheld the cash refund decision by the Commissioner (Appeal). Regarding interest on delayed refund, the Tribunal noted that the refund was allowed in the Cenvat account after more than three months from the claim filing date. Citing a Supreme Court decision, the Tribunal ruled in favor of the assessee's entitlement to interest from the claim filing date to realization.

Ultimately, the Revenue's appeal was dismissed, and the assessee's appeal allowed, with cross-objections disposed of accordingly. The Tribunal upheld the cash refund decision and granted interest on the delayed refund in favor of the assessee.