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2019 (7) TMI 1242 - AT - Central ExciseRefund of CENVAT Credit - duty paid under protest - Section 142 (3) of CGST Act, 2017 - HELD THAT - Considering the fact that as per Section 142 (3) of CGST Act, 2017, which was enforced with effect from 1.7.2017 if any refund arises on account of Cenvat credit, duty, tax, interest or any amount, the same shall be paid in cash to the assessee. Despite, clear-cut provisions of law in GST regime, the Commissioner (Appeals) has allowed the refund to be credited in their Cenvat Credit account which is against the spirit of law. The order of the adjudicating authority is restored - appeal allowed.
Issues: Refund claim directed to be credited in Cenvat Credit account post-GST regime introduction.
In this case, the appellant appealed against an order where the Commissioner (Appeals) sanctioned their refund claim but directed it to be credited in their Cenvat Credit account after the introduction of the GST regime. The appellant, engaged in manufacturing excisable goods, had paid duty on zinc dross/ash under protest and filed a refund claim. The adjudicating authority initially sanctioned the refund claim in cash to the appellant. However, the Revenue appealed this decision, leading to the Commissioner (Appeals) directing the refund to be credited in the Cenvat Credit account post-GST regime implementation. Upon hearing both parties, the Tribunal considered Section 142(3) of the CGST Act, 2017, effective from 1.7.2017, which stipulates that any refund due to the assessee regarding Cenvat credit, duty, tax, interest, or any amount should be paid in cash. The Tribunal noted that the Commissioner (Appeals) allowing the refund to be credited in the Cenvat Credit account was contrary to the law's spirit. By this action, the Commissioner (Appeals) unnecessarily embroiled the appellant in further litigation before the Tribunal, which was deemed unacceptable. Consequently, the Tribunal found no merit in the impugned order, setting it aside and restoring the adjudicating authority's original decision. Therefore, the Tribunal allowed the appeal with consequential relief, emphasizing the importance of adhering to the clear provisions of the law, especially in the context of refund disbursement post-GST regime implementation.
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