Case Law Details
Clariant Chemicals India Ltd Vs Commissioner of Central Excise (CESTAT Mumbai)
CESTAT Mumbai held that eligibility of taking credit of the duties is undisputable and also there was procedural aberration, in such case refund of credit by cash eligible u/s 142(6)(a) of the CGST Act.
Facts- Appellant is a manufacturer of excisable goods who procured certain inputs such as pigments, poly-ether alcohols etc. from Germany and filed bill of entry No. 2282496 on 29.06.2017 as well as cleared the goods upon payment of Customs duty including Countervailing Duty (CVD) and Special Additional Customs Duty (SAD) on dated 10.07.2017 vide challan. The goods were received by the Appellant at its factory premises on 19.07.2017 but the said payment of CVD and SAD could not be reflected in the ER-I Return as the due date was already over before the goods reached the factory. Appellant sought for refund of CENVAT Credit u/s. 11B of the Central Excise Act, 1944 read with Section 142 of the GST Act in this post GST regime as it could not avail the credits accumulated against payment of CVD and SAD. The refund sanctioning authority rejected the refund vide Order-in-Original dated 06.09.2018 and Appellant’s unsuccessful attempt before the Commissioner (Appeals) has brought the dispute to this forum.
Conclusion- It is apparent that Appellant’s eligibility to take credit of the duties paid as CENVAT Credit is undisputable and only because of procedural aberration occurred during transition to GST period, Appellant could not take the credits in its electronic ledger in the GST regime, for which it sought for refund such a contingency is perhaps foreseen by the legislature for which contingent provision is well enumerated in Clause 6(a) of Section 142 of the CGST Act that deals with claim for CENVAT Credit after the appointed date under the existing law.
It is an admitted fact of the parties that the said CENVAT Credit balance was not carried forward to the Appellant’s account on the appointed date since it was not due on the said day also. Therefore, in view of clear provision contain under Section 142(6)(a) of the CGST Act, Claimant/Appellant is eligible to get the refund of credit by cash except where unjust enrichment is alleged or established against the Appellant.
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