NICO Extrusions Ltd. Vs Union of India & Anr. (Bombay High Court)
Bombay High Court: Cash refund claim of pre-deposit for pre-GST regime, must be examined in light of Section 142
Summary: The Petitioner is a manufacturer. There was a demand of central excise duty raised on it. It made a pre-deposit; for filing an appeal, partly in cash and partly through debit in the credit ledger. It succeeded in appeal. It claimed a refund of such deposit. The order was passed, refunding the same in the credit account through PMT-03. The same was challenged in Writ Petition.
The Hon’ble Bombay High Court set aside the order and allowed the writ petition. It held: (i) the contention of the Petitioner in light of Section 142 for a cash refund needs to be examined; (ii) the issue being decided by this court in Combitic Global Caplet Pvt. Ltd. needs to be considered by the authorities; (iii) holds that the Petitioner should have been heard even when such sanction orders are passed; (iv) rejects the revenue’s submission on remedy of filing appeal on the ground that the order is violative of principles of natural justice; (v) accordingly; remands the matter back for a fresh decision.
