Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *  The GSTN has issued an Advisory dated 21.04.2026 about the introduction of an Offline Tool for the Invoice Management System (IMS)  *  CBIC extends due dates for filing of FORM GSTR 3B  for the month of April 2026 *  Interest cannot be imposed in adjudication order, if not demanded/quantified in show cause notice : Allahabad HC *  Wheelchairs with toileting facility eligible for exemption: CESTAT affirms customs duty exemption to importer *  Industries urge GST council to allow inverted duty refunds on input services *  Tamil Nadu GST dept introduced virtual hearing facility for GST appeals under under section 107 of the TNGST act: detailed guidelines  *  CIC urges authorities to implement GST evasion complaint tracking system *  Even if the assessee opts "NO" for personal hearing in form DRC-06 ,The mandatory requirement under section 75(4) to grant opportunity of hearing cannot be waived:Gujarat High Court  *  Glufosinate imports curbs imposed by govt *  Government extends Re-import period for exported cut & polished diamonds *  CIC flags lack of tracking system for tax evasion complaints,urges GST authorities to improve transparency *  No Custodial Interrogation needed in GST fraud case based on documentary evidence already in Department's Possession : Chattisgarh HC *  Orders under section cannot be sustained if passed without considering the taxpayer's objections and without granting a personal hearing:Gujarat High Court *  Mere cancellation of supplier's registration cannot,by itself,justify denial of ITC or cancellation of the recipient's registration:Bombay High Court *  High Court sets aside GST notice citing factual errors and natural justice violations *  Provisional Bank Attachment under Section. 110 of Customs Act Unsustainable Beyond Statutory period without Extension order: Bombay HC orders to defreeze accounts *  Post Clearance MRP Alteration by Distributor Does not attract Differential Customs Duty: CESTAT *  DGFT Expands scope of 'Screws' classification under RoDTEP Scheme  *  E-way bills surze to all time high of 140.6 million in March *  GST Exemption Allowed on Pure Labour Services for Standalone Houses: AAR  *  GST Payable Only on Margin in Second-Hand Car Sales, Subject to Strict Conditions and No ITC Claim: AAR *  DGFT rolls out procedure for allocation of calcined coke *  GST portal update : Pre-deposit amount now editable in Appeals *  J&K HC declared TMT scrap a 'Specified Good' eligibile for GST refunds under Support Scheme  *  Pigmy agents are employees of banks; no GST can be levied on commission  paid to them : Karnataka HC *  DGFT Revises HS Code Description for Screws Under RoDTEP *  GST Registration Cancellation Invalid Without Proper Service of Notice: Allahabad High Court. *  Bengaluru CGST | GST Backlog Appeals Deadline Fixed at June 30, 2026 *  No Time Bar on Refund of Service Tax for Services Not Rendered: CESTAT  Remands Indiabulls Case for Unjust Enrichment Check. *  Supreme Court Holds Renewable Energy Incentive Must Benefit Generators, Not Be Adjusted in Tariff
Subject News *   Delhi HC Quashes Order, Says Reminder Cannot Validate Improperly Served GST SCN *  KARNATAKA HIGH COURT REMANDS GST SHORTFALL MATTER DUE TO ABSENCE OF PERSONAL HEARING   *  CESTAT cancels confiscation and penalties on imported computer cabinet cases: Custom duty restricted to 111 surplus units *  Deposit of tax during search or investigation cannot be treated as 'Voluntary Payment' : Bombay High Court *  Section 76 of the CGST cannot be invoked where the tax has already been duly deposited, even if through another registration of the same entity: Madras High Court *  Sec 74 allows use of material regardless of source; illegality or flaws in section 67 search do not vitiate valid adjudication: HC *  Inter-State transfer of ITC on Amalgamation permissible as given under section 18(3) read with rule 41 of the CGST rules, 2017: Gujarat High Court *  HC: No GST on commisson paid to Pigmy Agents *  IGST refund denial on illegible bill of lading invalid absent chance to furnish docs; merit reconsideration in appeals directed: HC *  ITC is not admissible on GST paid on leasehold rights of land used fpr setting up an air seperation plant: AAAR,Tamil Nadu *  GST: No penalty under Section 74 after voluntary ITC reversal due to non-existent supplier : High Court *  TN AAAR denies GST ITC on Land Lease under Sec. 17(5)(d) for setting up plant and machinery *  GST proceedings quashed as notices sent to old address, despite updated address in registration *  Importer Can’t Be Penalised for Alleged IGCR Procedural Lapses Without Evidence of Departmental Error: CESTAT *  Structured Healthcare Training Not ‘Charitable Activity’, 18% GST Payable: AAR  *  CESTAT As The Appellate Authority For Central Sales Tax Disputes: A Paradigm Shift Under Finance Act, 2023 *   Rs. 25K Cost Imposed On SGST Joint Commissioner for Attaching Bank  Accounts Without Forming Mandatory “Opinion”: Bombay HC *   Ex-Parte GST Order Without Hearing Violates Natural Justice: Karnataka  High Court Quashes Adjudication and Bank Attachment.  *   Retrospective GST Cancellation Can’t Invalidate Genuine Transactions:  Jaipur Commissioner (Appeals) Quashes Rs. 95,670 ITC Demand. *   GST Pre-Deposit Non-Compliance: Allahabad High Court Allows Appeal  Subject to Rs. 30 Lakh Balance Deposit, Recognises Offline Filing. *  Documentary Nature of Evidence: Allahabad High Court Grants Bail in Rs. 32.66 Crore Fake ITC Fraud Case *  Supreme Court Flags Systemic Bias in Army’s Permanent Commission Process for Women Officers *  Re-Determination of Land Compensation Can Be Based on Appellate Court Awards, Clarifies Scope of S. 28-A: Supreme Court. *  Supreme Court Imposes Rs. 5 Lakh Costs On Rent Authority Officer For Acting Beyond Jurisdiction. *  DGGI Meerut | Court Denies Bail to Accused in Claiming Fake ITC And Export Refunds *  Denial of GST Rate Revision Benefit to Contractor Violates Article 14: Rajasthan HC *  GST Registration Cancellation for Non-Filing of Returns: Gauhati High Court Directs Restoration on Compliance. *   Supreme Court Quashes FEMA Adjudication Orders, Revives Proceedings at  Show Cause Stage. *   Higher Rank, Harsher Punishment Justified: Supreme Court Restores Dismissal  of Bank Manager in Misappropriation Case. *   Limitation for Export Refund to Be Counted from Foreign Exchange Realisation,  Not From Export Invoices Issuance: CESTAT  

Comments

Print   |    |  Comment

PJ/Case law/2014-15/2204

Whether assessee is liable to claim refund for amount deposited during investigation when there was no adjudication order?

Case:- RAYMOND LTD. Vs COMMISSIONER OF CUSTOMS (AIRPORT), MUMBAI

Citation:- 2014 (300) E.L.T. 523 (Tri. - Mumbai)

Brief facts:- The appellant was in appeal against the impugned order wherein the refund claim had been rejected as pre-mature.

The facts of the case in brief were that the appellant M/s. Raymond Ltd. had imported SAP software from SAP AG, a German Corporation. There was a dispute regarding the valuation of the goods, therefore, the DRI, Bangalore initiated an inquiry against the appellant. During the course of investigation, one of the officials of the appellant admitted the undervaluation of the software. Pursuant to the enquiry, the appellant paid an amount of Rs. 70,19,299/- (including duty of Rs. 53,04,000/- and interest of Rs. 17,15,299/-) without prejudice to their contention, in December, 2008. A show cause notice dated 31-8-2009 was issued to the appellant and adjudication of the said show cause notice was still pending. As no show cause notice was issued appellant, the appellant filed a refund claim of the amount deposited as mentioned hereinabove on 9-6-2009. The refund claim of the appellant was rejected on the premise that the same was pre-mature. Hence the appellant is in appeal before Tribunal.

Appellant’s contentions:- The learned Counsel for the appellant submitted that as the amount deposited by them during the course of investigation had not been adjusted against any duty demand therefore, the same had to be refunded. He also relied on various decisions of this Tribunal as well as the Hon’ble Supreme Court and the Hon’ble High Court of Punjab & Haryana such as Ganesh Enterprises v. CCE, Ahmedabad - 2009 (240) E.L.T. 106 (Tri.-Ahmd.), Florida Electrical Industries Ltd. v. CCE, Delhi - 2004 (168) E.L.T. 393 (Tri.-Del.), Raghu Exports v. Union of India - 2008 (229) E.L.T. 655 (P&H) and prayed that the refund claim be sanctioned to them.
 
Respondent’s contentions:- On the other hand, the learned A.R. appearing for the Revenue strongly opposed the contention of the learned Counsel and submitted that in this matter the appellant themselves had admitted their duty liability during the course of investigation and they had voluntarily paid the duty amount. He further submitted that although the show cause notice had been issued in the year 2009 but in this case there were more than 150 parties and against all of whom investigations were being carried out by the DRI. One adjudicating authority had been appointed by the C.B.E. & C. only in March, 2012. That was why adjudication could not be taken place till date. He further submitted that the amount pre-deposited by the appellant during the course of investigation being voluntarily, the decisions relied on by the appellant was not relevant to the facts of this case as in those cases the payment was made under force. He further submitted that the payment made by the appellant was to be deemed under Section 28(2)(b) of the Customs Act, 1962. Therefore, the refund claim filed by the appellant was to be rejected.
 
Reasoning of judgment:- It was a fact on record that the appellant paid the amount mentioned hereinabove during the course of investigation. A show cause notice was issued in August, 2009 but the adjudication of the said show cause notice had not been finalized till to date. The case law, relied on by the learned Counsel have dealt with the issue where the duty had been paid during the course of investigation and the adjudication could not be finalized particularly in the case of Raghu Exports (supra) wherein the Hon’ble High Court of Punjab and Haryana had reported the facts that “there was no amount outstanding against the petitioner but still under duress and threat the partners of the petitioner were forced to deposit the draft of Rs. 1 Crore and post dated cheques of Rs. 1.5 crores. The fact was disputed by the counsel for the respondents. He stated that the said draft was deposited by the partners of the petitioner along with the cheques voluntarily when the search and seizure was conducted by the department. It had been pointed out by him that the investigation was under way and the liability of the petitioner could go much more than the amount voluntarily deposited by the petitioner. He had further stated that the cheques of Rs. 1.5 crores were presented to the bank and the same have bounced. He contends that the prayer of the petitioner thus may not be granted. However, he had not disputed that as of date there was no amount outstanding against the petitioner.” In that set of facts, the Hon’ble High Court of Punjab & Haryana ordered for refund of the amount deposited during the course of investigation.

In this case also, it was not disputed that the appellant had paid the amount during the course of investigation but there was no adjudication order and no confirmation of demand as on date against the appellant. In these circumstances, as we were bound by the decisions relied on by the appellant cited hereinabove, we set aside the impugned order and allow the appeal with consequential relief.

The adjudicating authority was directed to expedite the case and sanction the refund claim within thirty days of receipt of this order.
 
Decision:- Appeal was allowed.
 
Comment:- The substance of the case is that if the assessee had paid the amount during the course of investigation but there is no adjudication order and no confirmation of demand till date against the assessee, in such circumstances, the assessee becomes eligible for claiming the refund of the same.

Prepared By: Ranu Dhoot
 

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