2026-VIL-1055-DEL-CE
  1. Home
  2. 2026-VIL-1055-DEL-CE

CENTRAL EXCISE High Court Cases

Central Excise – Rebate claim on export of goods - Adjudicating authority's obligation to consider operative orders of appellate forums when confirming demands - Although the rebate had initially been sanctioned, the Petitioner, acting upon the advice of the Department, had repaid the rebate amount along with interest. Thereafter, the petitioner continued to pay duty on the exported goods by debiting its CENVAT account and had taken credit of the duty so paid - Vide the impugned Order the Tribunal expressly held that petitioner was entitled to refund under Rule 5 of CENVAT Credit Rules 2004 – Dept confirmed the demand without considering the CESTAT's decision despite being apprised of the same - Whether an adjudicating authority can confirm a demand based on an appellate order that has been subsequently set aside by a higher appellate Tribunal - HELD - An adjudicating authority exercising statutory powers is necessarily required to take into account operative orders of appellate authorities having appellate jurisdiction over it and cannot disregard a subsequent appellate determination which directly bears upon the very issue under adjudication. Once the Order-in-Appeal dated 16.12.2019 which had set aside the Refund Order dated 06.05.2019 was itself set aside by the CESTAT vide Final Order dated 01.08.2024, the same could not thereafter be treated as an operative determination adverse to the petitioner - The CESTAT did not merely set aside the Order-in-Appeal on a technical ground but examined the substantive entitlement and expressly held that the petitioner was entitled to refund under Rule 5 of CENVAT Credit Rules 2004 and had specifically considered and decided the question of limitation in favour of the petitioner - The impugned order proceeds on a legal and factual premise which was no longer available. The Additional Commissioner committed a manifest error in confirming the demand without giving effect to the CESTAT's Final Order dated 01.08.2024 despite being specifically informed about it - The Order-in-Original and the Demand-cum-Show Cause Notice are set aside; The Respondent is directed to refund the amount together with applicable interest, in accordance with law – The writ petition is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?