2026 (6) TMI 763

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....t the instance of Audit, that was subsequently held by Hon'ble Gujarat High Court in the case of Sal Steel Ltd. Vs. Union of India [2020 (37) GSTL 3 (Guj.)] as not payable and basing on which Appellant has preferred its claim for refund. 2. The objections for hearing of the appeal and more particularly continuation of the proceeding before this Tribunal is raised by the Respondent-Department primarily on two grounds. First, Hon'ble Supreme Court in Granules India Ltd. [(2025) 37 Centax 284 (S.C.)] had passed an Interim Order asking to held up refund, if not already paid on the basis of the order passed by Hon'ble Telangana High Court in Central Excise Appeal No. 26 of 2024 in the said Granules India Ltd. (Respondent). Second,....

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....tive has argued that while referring the matter to the Larger Bench, the Division Bench of this Tribunal in its Interim Order has put forth a specific query on the point that in the absence of provision for grant of similar cash refund or re-credit under the erstwhile CENVAT Credit Rules (existing law), whether refund of CENVAT Credit in cash is permissible in terms of Section 142(3) of the CGST Act and therefore, till this issue is determined by the Larger Bench, proceeding in the present litigation may bring inconsistency to the issue required to be determined. Per contra, learned Counsel for the Appellant, in citing several decisions on this issue including that passed in the case of Union Territory of Ladakh and Others Vs. Jammu and Kas....

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.... 5392/2025]. 5. On the issue of reference made to the Larger Bench, while taking note of the submission made by learned Authorised Representative concerning the question of law referred for determination, it can very well be said that the said issue of grant of refund in cash was held to be permissible in terms of Section 142(3) of the CGST Act through several precedent decisions including in the case of Toyota Kirloskar Motor Pvt. Ltd. Vs. Pr. Commissioner of Central Tax, Pune in Excise Appeal No. 85425 of 2021 on 17.01.2025 and in the case of M/s. Clariant Chemicals India Ltd. Vs. Commissioner of Central Excise & Service Tax, Raigad vide final order No. A/85964/2022 on dated 18.10.2022, wherein with reference to Clause 3 and Clause 6A ....