Combitic Global Caplet Pvt. Ltd. v. Union of India (Bombay High Court)
The Hon’ble Bombay High Court in the case of Combitic Global Caplet Pvt. Ltd. v. Union of India [Writ Petition No. 729 of 2021 dated June 10, 2024] directed the Revenue Authority to rule the sanctioning authority to refund the amount in the CENVAT credit account in cash instead of crediting it to the CENVAT account.
Facts:
M/s Combitic Global Caplet Pvt. Ltd. (“the Petitioner”) was engaged in the manufacture and export of medicaments falling under Chapter 30 of the First Schedule to the Central Excise Tariff Act, 1985. The Petitioner had an amount of Rs.10,48,11,734/- in his CENVAT account. The Petitioner filed an application under Section 35EE of the Central Excise Act, 1944 (“the Central Excise Act”) before the Principal Commissioner of RA and Ex-officio Additional Secretary (“the Respondent”) for the refund of the excess duty paid.
An Order dated September 7, 2018 (“the Impugned Order”) was passed by the Respondent, directing the original authority to allow re-credit of excess duty paid by Petitioner in its CENVAT credit account amounting to Rs.10,48,11,734/-.
However, the Respondent vide Order dated October 5, 2018, held that the Government holds any amount paid in excess of duty liability on one’s own volition cannot be treated as duty and has to be treated as a voluntary deposit with the Government. This deposit is required to be returned in the manner in which it was paid as the said amount cannot be retained by the Government. Therefore, it was directed to re-credit in the CENVAT credit account from which it was paid subject to compliance with the provisions of Section 12B of the Central Excise Act.
