Charge of the double benefit will sustain only when the assessee claims the refund and utilise the same for payment of duty

Last updated: 24 December 2022

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The CESTAT has ruled that an Export Oriented Unit (EOU) was entitled to a refund of unutilised CENVAT credit. The Revenue Department had alleged a 'double benefit' because the credit was refunded and not reversed, but the Tribunal found this claim unfounded. The refund was processed under a notification that did not require credit reversal, and the unutilised credit was deemed equivalent to reversal. The assessee was also awarded interest for the delayed refund.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in the case of M/s. Bright Engineering Works v. CCE & ST Daman and Surat [Excise Appeal No. 10493 of 2014 and Excise Appeal No. 12764 of 2019,dated December 15, 2022], set aside the order passed by the Revenue Department rejecting the refund application of the assessee. Held that, the refund cannot be denied on the ground of double benefit to the Appellant due to non-transfer of unutilized CENVAT credit. Further, interest was allowed under Section 11BB of the Central Excise Act, 1944 ("theCE Act") for delay of refund.

Citation :
Excise Appeal No. 10493 of 2014 and Excise Appeal No. 12764 of 2019,dated December 15, 2022

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1 Year PLAN

1999

(Excl. of GST ₹359)

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3499

(Excl. of GST ₹629)

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4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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