JSW Steel Limited Vs Commissioner of CGST & Central Excise (CESTAT Mumbai)
CESTAT Mumbai held that appellant is entitled for refund of credit admissible on account of payment of Countervailing Duty [CVD] and Special Additional Duty [SAD] paid after 01.07.2017 [paid after Central Goods and Services Tax].
Facts- Appellant is a manufacturer of steel and imported iron ore / iron ore fines. Through 03 Bills of Entries and cleared its imported goods upon provisional assessment. After the finalisation of assessment, Appellant had paid CVD and SAD of ₹45,54,866/- between July, 2018 and July, 2019 but could not avail CENVAT Credit that was discontinued in the GST regime. Accordingly, Appellant sought for refund of the said amount in cash citing provision contained in Section 142(3) of the CGST Act but it was disallowed by the Refund Sanctioning Authority as well as by the Commissioner (Appeals). Legality of the said order of the Commissioner (Appeals) is questioned by the Appellant before this forum.
Conclusion- Held that when Section 146(6) of the CGST Act, 2017 commands this Tribunal to dispose of claim of CENVAT Credit in accordance with provision of existing law namely the Excise Act and if any credit found to be admissible to the claimant should be refundable to him in cash, notwithstanding anything to the contrary contained under the provision of Excise Act, Appellant is entitled to get the refund of credit admissible to it on account of payment made towards CVD and SAD even though such amount was not directly refundable under the existing law since Section 142(6) is confined to claim of CENVAT Credit and not to a claim of refund of CENVAT Credit alone. Hence the order.
