Case Law Details
Vistex Asia Pacific P Ltd Vs Commissioner of CGST (CESTAT Mumbai)
In the recent case of Vistex Asia Pacific P Ltd Vs Commissioner of CGST (CESTAT Mumbai), the Tribunal ruled in favor of the appellant, allowing the refund claim for an amount of Rs.7,09,489/- for unutilized Cenvat credit accumulated due to exports.
The appellant filed for a refund of unutilized Cenvat credit accumulated in their Cenvat Account due to exports under Notification 5/2006-CE(NT) as amended by Notification No. 27/2012-CE(NT) r/w Rule 5. The Adjudicating Authority initially sanctioned only part of the refund and rejected the remaining amount. The decision was upheld by the Commissioner (Appeals).
However, the Tribunal noted an inconsistency in the application of rules by the revenue. An identical issue of the appellant for a previous period was granted a full refund by the same adjudicating authority. CESTAT asserted that a contrary view on an identical issue would lead to legal confusion and uncertainty.
The Tribunal agreed with the appellant that the correct calculation under rule 5 should permit the deduction of utilized credit out of the total/net Cenvat credit. The balance unutilized Cenvat credit should then be refunded.
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