Refund - Pre-Deposit

[Adarsh Gupta]

Dear Sir's,

A Pre-Deposit was made using CENVAT and now appeal has been decided in favour of the company. The company has filed a refund application for the pre-deposit. Whether refund of CENVAT can be claimed in CASH?

Regards,

ADARSH GUPTA

AI Summary

Company Eligible for Cash Refund of CENVAT Credit Under Section 142(6)(a) CGST Act 2017 if Credit is Unusable. A company that made a pre-deposit using CENVAT credit won an appeal and sought a cash refund. One respondent clarified that refunds in cash are possible if the credit cannot be utilized, such as when a factory closes or is exempt from duty. Another respondent noted that historically, there was no provision for cash refunds of CENVAT credit upon factory closure, though case law often favored assessees. A third respondent confirmed eligibility for a cash refund under Section 142(6)(a) of the CGST Act 2017, provided the credit is deemed admissible.