Refund Claims Allowed in Cash Under GST Law

The Tribunal modified the impugned orders to direct that refund claims should be allowed in cash rather than being credited to the Cenvat credit account, in accordance with Section 142 of the Central Goods and Service Tax Act, 2017. As a result, the appellant was entitled to receive the refund claims in cash, settling the matter in favor of the appellant.

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Issues involved:
- Appeal against impugned orders for refund claims to be sanctioned in cash
- Interpretation of Section 142 of Central Goods and Service Tax Act, 2017

Analysis:

The appellant filed refund claims under Rule 5 of Cenvat Credit Rules 2004 for unutilized amounts from their Cenvat credit account due to the export of goods. The refund claims were partially allowed in cash and partially credited to the Cenvat credit account. The appellant contended that post the introduction of the Central Goods and Service Tax Act, 2017, all refund claims should be granted in cash. Thus, the appeal sought to modify the orders sanctioning the refund claims to be credited in the Cenvat account, requesting them to be granted in cash instead.

Upon hearing both parties, the Tribunal considered the provisions of Section 142 of the Central GST Act, 2017, which mandates that all refund claims are to be sanctioned in cash after its introduction. The Tribunal observed that no authority has the power to sanction refund claims to be credited in the Cenvat credit account post the enactment of this provision. Consequently, the Tribunal modified the impugned orders to direct that the refund claims should be allowed in cash rather than being credited to the Cenvat credit account. As a result, the appellant was deemed entitled to receive the refund claims in cash.

In conclusion, the Tribunal allowed the appeals with the terms stated above. The order was dictated and pronounced in the court, settling the matter in favor of the appellant.

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