Tribunal grants refund claim in demerger case, ruling against rejection lacking legal basis.

The Tribunal ruled in favor of the appellants, allowing their appeal for a refund claim of Rs. 17,44,041/- for double payment made during a demerger. Despite the rejection by the original authority and Commissioner (Appeals), the Tribunal found the rejection to lack legal or factual basis. The Tribunal considered the disclaimer certificate from M/s. Kanishk Steel Industries, stating no objection to the refund, and cited legal precedent to grant the refund without a No Objection Certificate. The impugned order was set aside, and the appeal was allowed with any consequential reliefs.

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Issues:
Refund claim for double payment made by appellant during demerger, rejection of refund claim by original authority and Commissioner (Appeals), eligibility for refund without No Objection Certificate from M/s. Kanishk Steel Industries.

Analysis:
The case involved the appellants, engaged in sponge iron manufacturing, who filed a refund claim of Rs. 17,44,041/- for double payment made during June 2014 after a demerger. The appellant-company came into existence post the demerger of M/s. Kanishk Steel Industries Limited. The appellant paid duty inadvertently in the name of the former company and then corrected the payment by paying the same amount in their own name. Despite submitting relevant documents like bank statements, invoices, e-payment challans, and a disclaimer certificate from M/s. Kanishk Steel Industries, the refund claim was rejected by the original authority and upheld by the Commissioner (Appeals).

During the proceedings, the appellant's counsel argued that the amount was mistakenly paid into the former company's account and was subsequently paid to the appellant's account on the same day. The rejection of the refund claim was based on the funds lying in the PLA account of M/s. Kanishk Steel Industries without a No Objection Certificate. The counsel highlighted a similar case decided by the Hon'ble High Court of Madras, where a refund was granted upon submission of a No Objection letter from the concerned company.

The Tribunal noted that the disclaimer certificate from M/s. Kanishk Steel Industries stated that they had no objection to the refund being granted to the appellant. Citing legal precedent and the documents submitted, the Tribunal found the rejection of the refund claim to be without any legal or factual basis. Consequently, the Tribunal set aside the impugned order, ruling in favor of the appellants and allowing the appeal with any consequential reliefs.

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