Case Law Details
Gabriel India Limited Vs Commissioner, Central Goods & Service Tax and Central Excise (CESTAT Delhi)
w.e.f. 01.07.2017, the Government of India had introduced GST regime which has replaced earlier Cenvat Credit Rules, 2004 with transitional period of 30 days. Accordingly, after 30.07.2017, no assessee is permitted to avail credit in the cenvat credit account. As per provisions vide Section 142(6)(a) existing on the date of order, which clarified that if any amount of credit arising out of legacy issued is found admissible to an assessee, shall be refunded to the assessee in cash.
FULL TEXT OF THE CESTAT DELHI ORDER
Brief facts of the case are that the appellant is engaged in manufacture of shock absorber falling under Chapter 87 of the Central Excise Tariff Act, 1985. The appellant in compliance of the Stay order dated 29.03.2012 of the Tribunal paid the amount of Rs. 6,60,016/- through cenvat and the interest and penalty of Rs. 5,31,799/- through e-challan. The appeal of the appellant was allowed by the Tribunal vide final order No. A/53129-53130/2017-SM (BR) dated 19.04.2017 and the demand confirmed vide order-in-original No. 8,10/ADC/ST/IND/2010-11 dated 21.03.2011 was set aside. Refund application filed by the appellant on 30.06.2017 and the adjudicating authority vide order-in-original dated 16.08.2017 sanctioned the refund of Rs.6,60,016/- by way of re-credit in cenvat credit account as it was paid through cenvat and the amount of interest and penalty of Rs. 5,31,799/- was sanctioned in cash.
2. Aggrieved by the order passed by the Adjudicating Authority in respect of the claim of Rs. 6,60,016/-, the appellant has contended that w.e.f. 01.07.2017, the Government of India had introduced GST regime which has replaced earlier Cenvat Credit Rules, 2004 with transitional period of 30 days. Accordingly, after 30.07.2017, no assessee is permitted to avail credit in the cenvat credit account. As per provisions vide Section 142(6)(a) existing on the date of order, which clarified that if any amount of credit arising out of legacy issued is found admissible to an assessee, shall be refunded to the assessee in cash.
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