Chandigarh CESTAT bench in the case of M/s Great India Steel Fabricators v. CCE appeal No. E/60833, 60836/2018 dated 14.02.2019 observed that the credit lying unutilized related to pre GST shall be refunded in cash after the introduction of GST. The Reference was given to S. 142 of GST Act.
Facts & Issue:
The appellant filed refund claims of unutilized credit on account of export of goods. The assessee claimed that after the introduction of GST the refund should be granted in cash.
The appellant shall be granted refunds in cash. The relevant paragraph is as follows:
“Considering the fact that on introduction of Central GST Act, 2017, Section 142 deals the situation which directs the authorities to sanction all the refund claims in cash, therefore, no authority can sanction refund claim to be credited in Cenvat credit account. In that circumstances, I modify the impugned orders to the extent that refund claims are to be allowed in cash, instead of crediting in Cenvat credit account. Accordingly, the appellant is entitled the refund claims in cash.”