Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
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.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

Comments

Print   |    |  Comment

PJ/Case Laws/2011-12/1246

Refund claim filed on the first date but retuned du to some lacunae – date of filing of claim will be the first date and not subsequent dates – claim not time-barred.

Case:Indra Processors v/s Commissioner of Central Excise, Jalandhar
 
Citation:2009 (236) E.L.T. 164 (Tri. – Del)
 
Issue:- Refund claim filed on the first date but retuned du to some lacunae – date of filing of claim will be the first date and not subsequent dates – claim not time-barred.

 

Brief Facts:- Appellants are engaged in processing of man-made fabrics with the aid of power steam, and hot air stenter. They paid duty under the compounded levy scheme under Section 3A of the Central Excise Act, 1944. The duty was paid on the basis of size of the chamber.
 
A doubt arose as to whether the duty was also demanded on the galleries which were pollution control equipment.
 
The Supreme Court in the case of CCE, Jaipur v Sangam Processors (Bhilwara Ltd.)[2002 (146) E.L.T. 254 (S.C.)] it was held that duty is not payable on galleries. Accordingly, the appellants filed refund claim of duty paid on galleries.
 
The refund claims for the period from June, 1999 to November, 1999 and 16. 12.98 to 31.01. 1999 were rejected on the ground of unjust enrichment and the refund claim pertaining to the period December 1999 and February 2000 were rejected on the grounds of unjust enrichment and time bar.
 
In appeal before the Tribunal, the Tribunal dismissed appeals as the dispute regarding duty liability under the compounded levy scheme under Section 3A of Central Excise Act, 1944, no proceedings can continue.
 
In appeal, the High Court set aside the order of the Tribunal in respect of appellants and the matter was sent back to the Tribunal for deciding the issue on merit, after taking into consideration of various pleas raised by the appellants including the plea that the incidence of duty has not been passed on to the consumers because their sale price continued to be the same which was prevailing before the grant of benefit of duty under Section 3A of the Act and also as to whether refund is time barred.
 
Appellant’s Contention:- Appellant contended that this case may be remanded to the Adjudicating Authority for verification of the records in respect of unjust enrichment. Regarding time bar issue, appellant submitted that they had filed refund claim on 26-6-2000 which was subsequently returned back by the authorities and various correspondences had taken place. They further submitted that ultimately they again filed the refund claim in the month of September, 2003 at the instance of Central Excise officers. Appellant drew the attention of the Bench to the various correspondences which were placed before the Commissioner (Appeals).
 
Appellant submits that they had placed the above correspondences before the Commissioner (Appeals) which was not disputed.
 
Respondent’s Contention:- Respondent submits that the Commissioner (Appeals) observed that the appellants failed to place on record any evidence that the department had asked to file the refund claim during the month of September, 2003.
 
Reasoning of the Judgment:- The Tribunal found that the appellants had placed evidences to establish that the refund claim was filed on 26th June, 2000 which was not accepted by the Commissioner (Appeals) on the ground that the appellants had not placed before the Adjudicating Authority. So, the finding of Commissioner (Appeals) that the appellants failed to produce the evidences that they have filed the refund claim in the month of September, 2003 at the instance of the Department, is contradictory. In any event, it is apparent from the face of record and the appellants filed the refund claim on 26-6-2000. So, the refund claim cannot be rejected on the ground of time bar.
 
Regarding unjust enrichment, the Tribunal found that the appellant had placed the certificate of the Chartered Accountant in respect of unjust enrichment, certifying the schedule of the balance sheet. It was held that this issue is required to be verified by the Adjudicating Authority. Impugned order rejecting refund claims on the issue of time bar set aside. Matter remanded for verification of evidences pertaining to unjust enrichment.
 
Decision:- Appeals allowed by way of remand.

 
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com