Is it valid to withhold refund amount on the basis that an appeal shall be filed in the future

PJ/Case Law/2020-2021/3646

Case: M/s Century Copper Rod Pvt. Ltd.

Citation: Appeal No. 8225 of 2020 dated 27.07.2020

Issue:
Is it valid to withhold refund amount on the basis that an appeal shall be filed in the future

Brief Facts:
M/s Century Copper Rod Pvt Ltd had filed filed an appeal before Tribunal and CESTAT has passed the order allowing refund along with interest calculated from the date of application till the date of payment. And the appliable rate of interest shall be 6%. The petitioner further approached the Assistant Commissioner for making the refund. But it was not made.

Applicant’s Contention:
The applicant has stated before Gujarat High Court that assistant commissioner passed order on 20.08.2019 holding that the petitioner was although entitled for refund, but directed that the said amount may be credited in the account of the “Consumer Welfare Fund” instead of crediting it in the account of the petitioner. Aggrieved by the said order dated 20.08.2019 of the Assistant Commissioner, the petitioner filed appeal, which was allowed by order dated 27.09.2019 by the Commissioner (Appeals) and the matter was remitted to the Assistant Commissioner to pay the refund amount along with interest. Thereafter, the Assistant Commissioner has not made payment so far.

Reasoning of Judgement:
High court upon hearing both the sides stated that the only reason for withholding the refund is that the department preferred an appeal before the high court against the order of the Tribunal is not sustainable. Withholding of refund amount on the basis that the department may file an appeal in future is not valid. Further the court ordered for the payment of amount of refund within 24 hours along with interest thereon at the rate of 6% and in case of delay then interest shall be payable at the rate of 18%. Further the officers were directed to pay the cost of petition to the petitioner which was fixed at Rs. 1,00,000/-.

Comment:
The intention of the department has always been to raise demand and interest thereon and pile up the funds. But in spite of an order being issued by Tribunal the officers have shown their recklessness in granting the refunds. This judgement shall be a landmark judgement to those assesses who are not being granted refund amount on time.

Comments

PJ/Case Law/2020-2021/3646

Post a Comment

Query