Tribunal grants refund to appellant after finding no outstanding liability under Sabka Vishwas Scheme

The Tribunal ruled in favor of the appellant in a case involving the appropriation of a refund against outstanding government dues. The appellant's refund application for unutilized Cenvat Credit was sanctioned by the Department but was appropriated against dues. The Tribunal found that the interest liability had been settled under the Sabka Vishwas Scheme, eliminating any outstanding liability, and allowed the refund claim of Rs.35,23,640. The decision was based on the absence of current outstanding liability, leading to the appellant's entitlement to the refund amount.

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Issues:
- Appropriation of refund against outstanding government dues
- Settlement of interest liability under Sabka Vishwas Scheme
- Entitlement for refund amount sanctioned by the Department

Appropriation of Refund Against Outstanding Government Dues:
The case involved the appellant, engaged in the manufacture of excisable goods, filing a refund application claiming unutilized Cenvat Credit due to the closure of their factory. The Department sanctioned a refund of Rs.35,23,640/- but appropriated it against outstanding government dues of Rs.51,86,838/-. The appellant appealed, arguing that the interest liability had been settled under the Sabka Vishwas Scheme, and there was no outstanding liability against them. The Tribunal found that the interest demands had indeed been settled under SVLDRS-4, and as there was no current liability, there was no basis for the appropriation of the refund amount against any outstanding dues.

Settlement of Interest Liability Under Sabka Vishwas Scheme:
The appellant contended that the interest amount confirmed earlier had been settled under the Sabka Vishwas Scheme, as evidenced by the SVLDRS-4 issued by the Department. The Tribunal acknowledged the settlement under the scheme and noted that the appeal filed by the appellant had been dismissed as deemed withdrawal following the settlement. This settlement under the scheme was crucial in determining the absence of any outstanding liability against the appellant, leading to the decision to allow the refund claim.

Entitlement for Refund Amount Sanctioned by the Department:
After considering the arguments from both sides and examining the case records, the Tribunal concluded that the appellant was entitled to the refund amount of Rs.35,23,640/- sanctioned by the Department. The Tribunal allowed the appeal, setting aside the impugned order and directing the grant of the refund to the appellant. This decision was based on the settlement of the interest liability under the Sabka Vishwas Scheme, which eliminated any outstanding liability against the appellant, justifying the refund entitlement.

In summary, the Tribunal allowed the appeal, ruling in favor of the appellant, as there was no current outstanding liability following the settlement under the Sabka Vishwas Scheme, thereby entitling the appellant to the sanctioned refund amount.

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