2024-VIL-446-CESTAT-HYD-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Refund of credit in cash under Section 142(3) of the CGST Act, 2017 - Consequent to transition from Central Excise to GST, appellant filed refund in cash for the amount of credit which they could not carry forward in TRAN-1 – Whether the appellants are entitled for refund of input credit, which was neither transitioned in accordance with TRAN-1 procedure into the new regime nor got reflected in the ER-1 or revised ER-1 return post 01.07.2017 – HELD – In terms of Section 142(3) of the CGST Act, any claim for refund of any amount of Cenvat credit has to be disposed of in accordance with the provisions of existing law and if any amount eventually becomes due, the same is required to be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law - In this case, appellants have neither filed revised ER-1 nor carried forward this credit in TRAN-1 in accordance with the procedure prescribed under Section 140 read with the relevant Rules and Notifications made thereunder - The wordings in Section 142(3) are quite unambiguous and a plain reading would essentially indicate that if such input credit were otherwise eligible for refund in cash or credit under the erstwhile Central Excise Act, then the same needs to be processed and allowed in accordance with the provisions of Section 142(3) but it does not provide for any independent statutory provision to examine and allow the eligibility of refund on its own without having any reference to the existing law - The relevant provisions of the Act has to be read in the context of the Act itself, except to the extent it provides for reference to the existing laws. Thus, the case laws relied upon by the appellants are not of much help to support their contention that Section 142(3) is an omnibus kind of provision to provide refund of all kinds of input credit, whether they are otherwise not having any explicit provisions under the Act or have failed to avail the explicit provisions under the Act for carrying forward such credit or for claiming refund of such credit in cash - essentially when there is no provision in the law either under the Cenvat Credit Rules, 2004 or in Central Excise Act to allow cash refund, for such unclaimed/accumulated credit, Section 142(3), per se, cannot make it an eligible refund, merely, because the appellant has not been able to utilize on the ground of not having filed the revised return or was not able to take the TRAN-1 route etc., within specified time - The options available for getting cash refund are clearly covered within the different provisions under the Act viz., Section 140, 142(3) & 142(9)(b). In the instant case, neither Section 140 was followed nor Section 142(9)(b) was availed. Therefore, the cash refund, by virtue of Section 142(3) would not be admissible in the facts of the case – the appeal is dismissed
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