Refund of unutilised CENVAT credit on input services: appeals rendered infructuous after denovo adjudication rejecting refund claims

Refund of unutilised CENVAT credit on input services raised the question of entitlement to interest on refunds; because the adjudicating authority subsequently conducted denovo proceedings and issued an Order-in-Original rejecting the refund claims, the prior appeals were rendered infructuous and no substantive determination on interest was made. The account of events confirms that intervening denovo adjudication and remand for fresh adjudication supersede earlier appellate proceedings, with the operative effect that issues already subject to fresh adjudication are inappropriate for determination in the pending appeals.

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Issues: Whether the appeals filed before the Tribunal seeking grant of interest on refund claims have become infructuous in view of subsequent denovo adjudication, fresh Order-in-Original dated 27.01.2025 and pending/renewed proceedings, and thus are liable to be dismissed.

Analysis: The appellant's original refund claims were rejected and went through multiple appellate stages including remand and denovo adjudication. After remand, denovo Orders-in-Original were passed rejecting the refund claims, the appellant pursued remedies including a writ petition to the High Court which remitted matter for fresh consideration and thereafter an Order-in-Original dated 27.01.2025 was passed; an appeal against that denovo order was filed before Commissioner (Appeals). Given these subsequent adjudications and the existence of continuing fresh proceedings on the same subject-matter, the appeals pending before the Tribunal insofar as they sought interest on earlier refund claims no longer presented a live controversy for the Tribunal to decide.

Conclusion: The appeals are dismissed as infructuous.

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