CENVAT refund claim with clerical error required remand for verification of credit balance and fresh adjudication.

A refund claim based on an alleged inadvertent clerical error in the declared CENVAT credit balance required fresh verification, because the error was not rejected on merits and the closing balance in the books had to be checked. The appellate authority's refusal to grant relief solely because the mistake had not been raised before the adjudicating authority was inappropriate. The matter was therefore remanded for verification of the credit balance as on the refund date and for a fresh speaking order after hearing the assessee.

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Issues: Whether the refund claim required reconsideration on the ground of an inadvertent clerical error in the declared CENVAT credit balance and verification of the closing balance in the appellant's books.

Analysis: The appellate authority had noticed the plea of inadvertent error but declined relief on the ground that the mistake was not brought before the adjudicating authority. The error was not disbelieved on merits. In such circumstances, the appropriate course was to obtain verification from the adjudicating authority regarding the correctness of the closing CENVAT credit balance as on the date of claim and then decide the matter afresh in accordance with law.

Conclusion: The matter was required to be remanded for verification of the inadvertent error and the credit balance, and the assessee succeeded to that extent.

Final Conclusion: The impugned order was set aside and the refund dispute was restored to the adjudicating authority for a fresh speaking order after verification and hearing.

Ratio Decidendi: A bona fide clerical error affecting a refund claim should be verified on remand where it is not rejected on merits, and the claim must be adjudicated afresh after proper factual verification and hearing.

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