Tribunal grants relief to appellant in Cenvat credit refund calculation dispute. The Tribunal allowed the appeal, setting aside the Commissioner's decision and granting relief to the appellant regarding the calculation of admissible ...
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Tribunal grants relief to appellant in Cenvat credit refund calculation dispute.
The Tribunal allowed the appeal, setting aside the Commissioner's decision and granting relief to the appellant regarding the calculation of admissible refund under Rule 5 of Cenvat Credit Rules, 2004 r/w notification No. 27/2012-CE(NT) for the period of July, 2016 to September, 2016. The Tribunal emphasized the importance of consistency in decisions and ruled in favor of the appellant's contention that they were not properly heard before the refund rejection. The correct method, as per the Tribunal, involved deducting the utilized credit from the total Cenvat credit to determine the refund amount.
Issues involved: Calculation of admissible refund under Rule 5 of Cenvat Credit Rules, 2004 r/w notification No. 27/2012-CE(NT).
Summary: The appeal was filed against the Order dated 18.01.2019 passed by the Commissioner of Central Tax (Appeals-I), Mumbai, rejecting the appellant's appeal. The issue pertained to the calculation prescribed under the formula as per Rule 5 of Cenvat Credit Rules, 2004 r/w notification No. 27/2012-CE(NT) for calculating the admissible refund for the period of July, 2016 to September, 2016.
The appellant had filed a refund claim for Rs.7,09,489/- for unutilized Cenvat credit accumulated due to exports, which was partially rejected by the Adjudicating Authority and upheld by the Commissioner (Appeals). The appellant contended that a similar issue had been decided in their favor for the prior period, indicating inconsistency in the decisions by the same authority. The Tribunal emphasized that allowing a contrary view on an identical issue would lead to confusion and upheld the appellant's claim that they were not properly heard before the rejection of the refund. The correct view, as per the Tribunal, was to deduct the utilized credit from the total Cenvat credit to determine the refund amount.
After considering the arguments and case records, the Tribunal set aside the impugned order and allowed the appeal filed by the appellant, providing consequential relief if any. The decision was pronounced in open court on 13.06.2023.
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