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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
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PJ/Case Laws/2012-13/1241

No amount can be retained by department without confirmed demand- refund allowed.



Case:-Commissioner of Central Excise., Chandigarh versus Shiv Saraswati Steel Industries
 
Citation:- 2012 (279) E.L.T. 415 (Tri- Del)
 
Brief Facts:-The Respondent filed an application for refund. They stated that the department made them debit the amounts in PLA under coercion and the amount was not voluntarily paid. They submitted that till the date of filing of the refund application, no Show Cause Notice giving the details of duty evaded by them had been issued to them. The Deputy Commissioner who considered the refund application was of the view that the amount deposited by the Respondent was towards their accepted duty liability on account of clandestine clearances and in fact as per the case made out by Revenue, evasion of duty is to the tune of Rs. 35.00 lakhs ap­proximately whereas they have deposited only Rs. 8.00 lakhs and, therefore, the claim for refund is untenable and pre-mature and rejected the refund claim. Aggrieved by the order of the Deputy Commissioner, the Respon­dent filed an Appeal with the Commissioner (Appeals). He considered the ap­peal and he ordered that refund as requested should be granted because there was no duty confirmed against the Respondent and there was not even a Show Cause Notice till the date of hearing. Aggrieved by this order; Revenue has filed this appeal along with stay Application.
 
 
Appellant’s Contention:- . The Appellant argues that the amount in question was debited voluntarily by the Respondent and he cannot claim any refund when the investigations was continuing. He further informs that a Show Cause Notice detailing the offence was issued and he argues that the order of the Commissioner (Appeals) is bad in law because the deposit was made voluntarily towards duty liability that was unearthed during investigation.
 
 Respondent’s Contention:- The Respondent submits that the deposit was not made voluntarily and that they will reply to the Show Cause Notice issued to them. They undertake that if any duty is found due from them such amount will be remitted. His is argument is that, there is no confirmed duty de­mand against them and the department has no right to retain any money in the absence of a confirmed duty demand.

Reasoning of Judgement:- Hearing on Both Sides that There is no merit in the argument that an assessee can not claim re­fund. Against a deposit made voluntarily. The question whether the deposit was made voluntarily itself is under dispute. The very fact that they have filed a refund claim would show that the deposit was not made voluntarily but was made under duress. Further even if the deposit is made voluntarily they can claim re­fund of such deposit as in the case of any other duty payment or duty deposit and the department has no right to retain any amount so long as there is no con­firmed duty demand pending against the assessee. So I do not see any reason to interfere with the order passed by the Commissioner (Appeals). The appeal filed by the Department is rejected.
 
Decision:- Appeal Rejected.

Comment:- This is important decision that the amount deposited by the manufacturer either voluntarily or otherwise under duress by the department then it cannot be retained by the department unless and until it is supported by a confirmed demand. If the amount is deposited and there is no confirmed demand then the same has to be refunded to the assesee. This decision is very important for manufacturers as the department normally asks them to deposit the amount and later on does not issue show cause notice at all. Hence, in all such cases, the manufacturer can claim refund of the same from the department. 
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