Sun Pharmaceutical Industries Ltd Vs C.C.E. & S.T.-Daman (CESTAT Ahmedabad)
The issue involved in the present case is whether the appellant is entitled for refund of unspent balance of Personal Ledger Account (PLA) due to change in taxation regime from central excise to GST with effect from 01.07.2017 and whether the limitation as provided under section 11B is applicable in the case of refund of unspent PLA Balance.
CESTAT held that in case of PLA balance, it is not deposited as a duty but it is deposited as advance towards the duty. The PLA Amount takes the color of excise duty only when it is utilized for payment of duty on clearance of excisable goods. The unspent balance of PLA is only advance not duty therefore, Section 11B is not applicable.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved in the present case is whether the appellant is entitled for refund of unspent balance of Personal Ledger Account (PLA) due to change in taxation regime from central excise to GST with effect from 01.07.2017 and whether the limitation as provided under section 11 B is applicable in the case of refund of unspent PLA Balance.
2. Shri Mahesh Tailor, DGM (Indirect Taxation) of the appellant’s company submits that in the case of refund of PLA Balance section 11 B is not applicable. He placed reliance on the following judgments:
- NAVDEEP PACKAGING INDUSTRIES – 2007 (210) ELT 417 (TRI. MUMBAI)
- JAY SHREE TEA & INDUSTRIES LTD – 2005 (190) ELT 106 (TRI.-KOLKATA)
- BIJALIMONI TEA ESTATE – 2007 (215) ELT 63 (TRI.- KOLKATA)
3. Shri Dinesh Prithiani, Assistant Commissioner(AR) appearing on behalf of Revenue reiterates the finding of the impugned order. He relies upon the decision of this tribunal in the case of VALSON POLYESTER LTD.- 2011(274) ELT 444 (Tri. Ahd)
4. I have carefully considered the submission made by both sides and perused the records. I find that the Learned Commissioner (Appeals) rejected the refund claim on the ground that the limitation under 11B is applicable according to which the claimant should have filed the refund within the one year from date of payment. I find that in case of PLA balance, it is not deposited as a duty but it is deposited as advance towards the duty. The PLA Amount takes the color of excise duty only when it is utilized for payment of duty on clearance of excisable goods. The unspent balance of PLA is only advance not duty therefore, Section 11B is not applicable. This tribunal in various decisions held as under:-
