Formal refund claim for refund pursuant to CESTAT

[RAMACHANDRAN H]

Our client a SEZ unit was ordered a refund of excise duty in April 2007 by CESTAT.(The duty was paid under protest)The refund order quantified the amount but was subject to unjust enrichment.Excise authorities refused to accept the refund claim pursuant to order on the pretext that client is covered by customs jurisdiction only.Customs authorities also did not respond to formal refund claim filed in April 2008.Finally a formal refund claim was made to Excise authorities in April 2009. The queries are 1. Is it mandatory to file a formal refund claim for refund pursuant to CESTAT order.Does 1 year limitation period apply for filing refund claim pursuant to CESTAT order.Are there any case laws , circulars favouring client. Members may give their views

[Surender Gupta]

Kindly see the order of CESTAT - 2009 -TMI - 34519 - CESTAT, NEW DELHI in which it was held that the relevant date for computing the period of one year would be the date of order in appeal. But I think your case is different and must be contested on the ground that refund was filed before the customs authorities in April 2008 - Since there was confusion about the jurisdiction, customs authorities have accepted the refund application - since department itself is not clear about the jurisdiction, assessee should not suffer the lack of clarity on the part of department.

AI Summary

Refund claim procedure: one-year limitation runs from appellate order; jurisdictional confusion should not prejudice the claimant. CESTAT authority indicates the one-year limitation for refund runs from the date of the appellate order. Where jurisdiction between customs and excise was unclear, an earlier refund application filed with customs should be weighed to avoid prejudicing the claimant, and the tribunal-quantified refund remains subject to unjust enrichment scrutiny.