Case Law Details
Indore Treasure Market City Pvt Ltd Vs Commissioner of Central Goods And Service Tax And Central Excise (CESTAT Delhi)
In the landmark case of Indore Treasure Market City Pvt Ltd versus Commissioner of Central Goods And Service Tax And Central Excise (CESTAT Delhi), the appellant contested the Order-in-Appeal No. 47/2023-24 dated 23.05.2023. This case is pivotal in understanding the intricacies of GST refunds, Cenvat Credit, and the principles of unjust enrichment in the context of Indian tax law. The appellants, engaged in the business of managing malls, multiplexes, and entertainment centers, faced a legal challenge regarding the wrongful availment of Cenvat Credit amounting to Rs.10,21,04,601/- and sought a refund on the same with interest.
Detailed Analysis
The genesis of the dispute lies in the Department’s initial observation and subsequent demand for the reversal of the Cenvat Credit claimed by the appellants. The matter saw relief in favor of the appellants with the Tribunal’s final order allowing the Cenvat Credit for the period before 01.04.2011 and directing the quantification of the demand. The crux of the appeal, however, revolved around the refund of Rs.7,15,09,643/- claimed by the appellant, which was sanctioned without interest, leading to the present appeal.
The appellant’s counsel cited numerous precedents to establish the entitlement to interest on the refunded amount, arguing that the issue of granting interest on such refunds was well-settled. The defense against the appeal by the department’s representative leaned on decisions from the Hon’ble Bombay High Court and a Nine-Member Constitutional Bench decision of the Supreme Court, aiming to uphold the original order denying interest on the refund.
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