CVD refund of Rs.1,50,147 allowed for re-imported goods under Section 142(3) CGST Act 2017

CESTAT Mumbai ruled in favor of appellant regarding CVD refund eligibility under Section 142(3) of CGST Act, 2017. The case involved re-imported goods where CVD was paid on 18.07.2017, after GST implementation date (01.07.2017), preventing Cenvat credit utilization. Commissioner (Appeals) had denied refund under Section 142(3) provisions. CESTAT relied on larger bench precedent in M/S. BOSCH ELECTRICAL DRIVE case establishing tribunal's jurisdiction over such appeals. The tribunal found strong grounds for CVD refund of Rs.1,50,147/- on re-imported Metformin HCL, holding the impugned order dated 07.01.2020 legally unsustainable. Appeal was allowed.

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Issues Involved:
1. Eligibility to claim refund of Additional Duties of Customs (CVD) paid on re-import of goods u/s 142(3) of the CGST Act, 2017.
2. Jurisdiction of the Tribunal to decide appeals regarding refund orders under Section 142(3) of the CGST Act, 2017.

Summary:

Issue 1: Eligibility to Claim Refund of CVD:
The appellant, M/s Alcon Biosciences Pvt. Ltd., re-imported 4049.33 kgs of 'Metformin HCL BP' and paid CVD of Rs. 1,50,147/- on 18.07.2017. The appellant sought a refund of this CVD u/s 11B of the Central Excise Act, 1944 read with Section 142(3) of the CGST Act, 2017, as they could not take Cenvat credit post-GST implementation. The original authority and Commissioner of GST and CX (Appeals-I) rejected the refund claim. The Tribunal found that the appellant was eligible for a refund under Section 142(3) of the CGST Act, 2017, as the CVD was paid after the appointed date, and the appellant could not take credit as Cenvat credit. The Tribunal relied on judgments from various High Courts supporting the eligibility for refunds under similar circumstances.

Issue 2: Jurisdiction of the Tribunal:
The Tribunal examined whether it had the jurisdiction to decide appeals against refund orders under Section 142(3) of the CGST Act, 2017. The Larger Bench of the Tribunal in the case of Bosch Electrical Drive India Pvt. Ltd. Vs. Commissioner of GST & Central Excise, Chennai, had confirmed that appeals against such orders lie with the Tribunal. The Tribunal thus held it had jurisdiction to decide the present appeal.

Conclusion:
The Tribunal set aside the impugned order dated 07.01.2020, allowing the appeal filed by the appellant with consequential relief, confirming the appellant's eligibility for a refund of the CVD paid on re-imported goods under Section 142(3) of the CGST Act, 2017. The order was pronounced in open court on 03.06.2024.

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