2024-VIL-1080-CESTAT-HYD-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – Refund of CVD & SAD – Import under Advance Authorization – Failure to meet the export obligations – Appellant approached the Policy Relaxation Committee (PRC) for extension, but their request was rejected. Subsequently, the appellant paid the entire duty liability and filed a refund claim towards refund of CVD and SAD. The refund claim was rejected by the Original Authority and the Commissioner (Appeals) - Whether the appellant is entitled to a refund of the CVD and SAD paid in cash under Section 142 of the CGST Act, 2017 – HELD - the refund in cash under Section 142(3) of the CGST Act would be admissible only if the said refund is otherwise admissible for refund in cash under the existing law. In the present case, there was no provision for refund of the CVD and SAD in cash under the existing law, as the appellant had failed to meet the export obligations under the Advance Authorization - There are only limited provisions for the cash refund in the existing law in respect of refund of credit taken by the assessee i.e. Rule 5, 5A, and 5B of Cenvat Credit Rules 2004, and admittedly the case of the appellants does not fall within these rules, therefore, in the event they were not entitled to refund of credit in cash in respect of CVD and SAD under the existing law, then the provisions of Section 142 would not make them otherwise entitled to the said refund in cash - input credit cannot be treated as a substantive right, and the entitlement of credit is subject to the fulfillment of certain conditions and obligations. Merely because the duty was paid later, the appellant would not become entitled to the refund of the same amount in cash under the provisions of Sections 142(3) or 142(6) of the CGST Act - the appellant is not entitled to a refund of the CVD and SAD in cash under Section 142 of the CGST Act – the appeal is dismissed

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