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Informative

No provision for Refund in Cash for Tax paid / Credit taken on Input: CESTAT upholds Rejection Refund Cash

Update / Judgement Date

16 Jun 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & Custom

The Hyderabad bench of the Customs Excise and Service Tax Appellate Tribunal (CESTAT) upheld the rejection of a cash refund for unutilized Cenvat credit on inputs, as there is no provision for such refunds. \r


The appellants, engaged in pharmaceutical manufacturing, sought a cash refund of Rs.49,14,215/- after transitioning to GST, but the department rejected it, citing Section 142(3) of the CGST Act, 2017. The Tribunal confirmed that refunds for unclaimed credit must align with existing laws, and since neither Section 140 nor Section 142(9)(b) applied, the cash refund was inadmissible. \r


The order by the Commissioner (Appeals) was upheld by A.K. Jyotishi.