Refund of unavailed credit before GST in Cash

Last Updated On: Feb. 9, 2020, 3:32 p.m.
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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.

Appearance:

Present for the Appellant(s): Shri Naveen Bindal (Advocate) Present for the Respondent(s): Shri Harvinder Singh (AR) CORAM:

Hon'ble Mr. Ashok Jindal, Member (Judicial) FINAL ORDER NO. 60129-60130 / 2019 Per: Ashok Jindal The appellants are in appeal against the impugned orders praying that the refund claims are to be sanctioned in cash.

2. The facts of the case are that the appellant filed refund claims of unutilized amount lying in their Cenvat credit account under Rule 5 of Cenvat credit Rules 2004, on account of the export of goods. The refund claims partly allowed in cash and partly credited in Cenvat credit account. The grievance of the appellant is that after the introduction of the Central Goods and Service Tax Act, 2017 all refund claims are to be 2 APPEAL NO. E/60833, 60836/2018 sanctioned in cash. Therefore, by way of these appeals, the appellant sought to modify the orders of sanctioning of refund claims in the Cenvat account for granting the refund claims in cash.

3. Heard the parties.

4. Considering the fact that on the introduction of the Central GST Act, 2017, Section 142 deals with 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.

5. With these terms, the appeals are allowed.

(Order dictated and pronounced in the court) Ashok Jindal Member (Judicial) Kailash

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