2017 (3) TMI 1754 - HC - Customs

Court orders refund within 8 weeks, stresses finality of CESTAT's order, dismisses appeal for delay.

Gayatri Timber P Ltd Versus Union of India

Gayatri Timber P Ltd Versus Union of India - TMI Issues:Challenge to Order-in-Original refusing refund arising from CESTAT decision.Analysis:The petitioner challenged an Order-in-Original denying a refund following a CESTAT decision. Three statutory appeals by the petitioner were rejected by the Appellate Authority, but CESTAT allowed them based on a decision from Ahmedabad Bench, confirmed by Gujarat High Court. The Department informed CESTAT that the Supreme Court allowed the refund subject to a bank guarantee. The CESTAT's order of 30-12-2015, which allowed the appeals, has since become final as no further appeals have been filed by the petitioner.The petitioner sought a refund based on the CESTAT decision, but the Adjudicating Authority refused, stating it could only be implemented under the terms set by the Supreme Court in a related case. However, the court noted that the dispute between the petitioner and the Department had concluded with the CESTAT's decision.The Department filed for a review, which was dismissed in 2016, leading them to file an appeal within the limitation period. The court clarified that the cause of action for the appeal arose from the CESTAT's 2015 order, and a later dismissed modification application did not extend the limitation period for the appeal.Despite the Department's intention to file an appeal, they did not do so promptly, waiting until after the current writ petition was filed. The court emphasized that the finality of the CESTAT's order could not be undermined by a delayed appeal. Consequently, the writ petition was allowed, directing the respondents to refund the amount within eight weeks from the order date, with pending petitions in the case to be closed without costs.