Transitional refund under GST allowed for pre-GST import duties paid later, with unjust enrichment not applying.

Section 142(3) of the CGST Act operates as a transitional refund provision for amounts paid under the existing law, and any admissible refund is to be paid in cash subject to section 11B(2) of the Central Excise Act. CVD and SAD paid after GST commenced, but relating to imports made before 01.07.2017, remained within that transitional framework because the duties were otherwise eligible as CENVAT credit under the erstwhile regime. The later payment in 2019 to regularise the advance authorisation obligation did not take the claim outside section 142(3), and unjust enrichment did not apply because the appellant had borne the incidence of duty. Cash refund was therefore admissible.

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Issues: Whether CVD and SAD paid after the GST regime came into force, in respect of imports made before 01.07.2017, were eligible for cash refund under section 142(3) of the Central Goods and Services Tax Act, 2017.

Analysis: Section 142(3) is a transitional provision and requires refund claims for amounts paid under the existing law to be dealt with under that law, with any amount eventually accruing to be paid in cash, subject only to section 11B(2) of the Central Excise Act, 1944. The duties paid by the appellant related to pre-GST imports and were otherwise admissible as CENVAT credit under the erstwhile regime, but after the GST regime began, the credit could not be availed because the earlier credit mechanism had ceased to exist. The appellant had borne the incidence of the duties, so the bar of unjust enrichment was not attracted. The payment made in 2019 to regularise the advance authorisation obligation did not convert the claim into one outside the transitional refund framework.

Conclusion: The appellant was entitled to cash refund of the CVD and SAD under section 142(3) of the Central Goods and Services Tax Act, 2017.

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