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Tribunal orders full refund of disputed amount, directs authorities to credit account. The Tribunal allowed the appellant's appeal, setting aside the lower authorities' decision to restrict the refund claim to Rs. 18,96,019 and rejecting the ...
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Tribunal orders full refund of disputed amount, directs authorities to credit account.
The Tribunal allowed the appellant's appeal, setting aside the lower authorities' decision to restrict the refund claim to Rs. 18,96,019 and rejecting the Rs. 25 lakhs claim. The Tribunal directed the authorities to sanction the refund of Rs. 25,00,000, emphasizing that the evidence showed the amount was credited to the Government account in 2007, despite not being debited in the PLA until 2017.
Issues: Refund claim rejection of Rs. 25 lakhs.
Analysis: 1. The appeal was against an order dated 19.02.2018. The appellant, a manufacturer of electrical fans, faced charges of irregular CENVAT credit availment in 2007. They deposited Rs. 25 lakhs during investigation, and a penalty of Rs. 16 lakhs was imposed. The adjudicating authority confirmed the demands and penalties. The first appellate authority upheld the order, leading to an appeal to the Tribunal. The Tribunal set aside the order and allowed appeals with consequential relief. The appellant then filed a refund claim for Rs. 43,96,019, but it was restricted to Rs. 18,96,019 by the lower authorities, rejecting the Rs. 25 lakhs claim.
2. The first appellate authority rejected the refund claim of Rs. 25 lakhs stating it was premature as the amount was not debited in the PLA until 2017. The appellant argued that the amount was credited to the Government account in 2007, as evidenced by bank certificates. They cited previous Tribunal decisions supporting their claim for refund based on payment realization. The departmental representative contended that the amount was not debited in the PLA, making the refund premature.
3. The main issue was the rejection of the Rs. 25 lakhs refund claim due to non-debiting in the PLA until 2017. The first appellate authority's decision was based on this premise. However, the appellant provided evidence of the amount being credited to the Government account in 2007. The Tribunal found the lower authorities erred in not sanctioning the refund claim based on overwhelming evidence of payment to the Government Treasury. Consequently, the impugned order was set aside, and the appellant's appeal was allowed with directions to sanction the refund of Rs. 25,00,000 immediately.
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