Case Law Details

Case Name : LCL Logistics (India) Pvt. Ltd Vs. Commissioner Of Customs (Export)
Appeal Number : [2014-TIOL-2330-CESTAT-MUM]
Date of Judgement/Order :
Related Assessment Year :

Tribunal can initiate contempt proceedings against the Department in case of failure to sanction refund long pending to the Assessee consequent to favourable Tribunal order

LCL Logistics (India) Pvt. Ltd. (the Appellant) filed a Miscellaneous Application before the Hon’ble CESTAT, Mumbai, in respect of Order of the Hon’ble Tribunal vide which the penalty on the Appellant was reduced from Rs. 5,00,000/- to Rs. 1,00,000/-. The Appellant contended that more than three years have passed and the Department has not refunded balance amount of Rs. 4,00,000/- despite of many letters dated August 23, 2011, November 7, 2011, January 25, 2012, June 18, 2012 and March 13, 2013 addressed to the Department. It was further submitted that no reply has been received from the Department’s side in response to the stated letters, which was even admitted by the Department.

The Appellant further submitted that under Rules 40 and 41 of the CESTAT (Procedure) Rules, 1982, the Hon’ble Tribunal can invoke its authority to give effect to the Order of the Tribunal passed on August 1, 2011.

The Hon’ble CESTAT, Mumbai while deciding the Miscellaneous Application, held that it is most unfortunate that the Department has not even cared to reply to any letter of the Appellant seeking refund consequent to the Order of this Tribunal and accordingly, ordered the Department to sanction the refund within 45 days of the receipt of this Order.

It was further held by the Hon’ble Tribunal that in case of any further failure on part of the Department, the Tribunal may have to consider contempt proceedings against the Sanctioning Authority.

(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: bimaljain@hotmail.com)

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One response to “Tribunal can initiate contempt proceedings for non-issue of refund despite its order”

  1. BalakrishnanGurumurti says:

    take action on government servants that is called governance if one closely reads article 265. i do not care the great circular as it seems to support wrong men in government and you pay from tax payers funds ministry you do not have funds of your own but who are you to cut into public funds besides it shows you don’t have control on your men very bad indeed in a democracy!

  2. Manish Sachdeva says:

    Our refund is being deliberately held on by the Technical Division, any remedy available?

  3. g.balakrishnan says:

    what is wrong with taxguru when it says duplicate comment very sad to see taxguru actions!

    indeed what guru you are?

  4. g.balakrishnan says:

    it shows how the departments treat the honorable tribunal; why the honorable tribunals are not firm on departments; that shows the ministry of finance seems controlling the ministry of law; if so, better abolish tribunals as it cannot meaningfully function that should be the plea before High courts that way it might be possible either the hon tribunal might regain its prestigious position or else the tribunals would wind up as its order on departments have no effect but if orders against the tax payer immediately revenue plunges fast what it means?

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