Case Law Details
Emerson Process Management Power & Water Solutions India Pvt. Ltd Vs Union of India (Delhi High Court)
In the present case, the petitioner’s request for refund of CENVAT credit in cash was rejected for the reason that it was filed beyond the period of limitation. The petitioner submits that although it was no longer entitled to receive cash equivalent to the CENVAT credit in its account, it was nonetheless entitled to utilize the same for the specified purpose. He submits that in the circumstances, the proviso to Section 142(3) of the Act must be read in a restrictive manner, to only apply in cases where the claim for cash refund of CENVAT credit has been rejected on merits and not on the ground of limitation. He submits that it is well settled that limitation would bar a particular remedy but does not extinguish a right.
After some arguments, the learned counsel for the parties point out that the Supreme Court in the case of Union of India & Anr. v. Filco Trade Centre Pvt. Ltd. & Anr. [SLP(C) Nos.32709-32710/2018] has passed a blanket order directing the respondent to open the portal for filing of relevant forms, that is, TRAN-1 and TRAN-2 for two months.
The period of two months was subsequently extended by another order dated 02.09.2022 and the window for filing the necessary forms is now open till 30.11.2022.
A plain reading of the aforesaid directions also indicates that the concerned officer has been given 90 days to verify the veracity of the claims / transitional credit and to pass appropriate orders on merits after granting the reasonable opportunity to the parties concerned.
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