The Delhi bench of the CESTAT observed that where the company paid CVD and SAD during GST regime, the same is allowable as refundunder the provisions of Section 142(3) and (6) of the CGST Act.
The appellants, Mithila Drugs Pvt. Ltd, is engaged in the manufacture of drugs such as Tinidazole, Metronidazole etc falling under Chapter 29 of the Central Excise Tariff Act, 1985. The final products manufactured by the Appellant were being exported and also cleared for domestic consumption on payment of applicable excise duty.
The Revenue, while defending the order denying refund, contended that the appellant have not provided any documentary evidence before the Adjudicating Authority as well as the Appellate Authority.
Judicial member Mr. Anil Chaudhary found that the payment of CVD and SAD subsequently during GST regime, for the imports made prior to 30.06.2017 is not disputed under the advance authorisation scheme.
“It is also not disputed that the appellant have paid the CVD and SAD in August, 2018 by way of regularisation on being so pointed out by the Revenue Authority. Further, I find that the Court below have erred in observing in the impugned order, that without producing proper records of duty paid invoices etc. inmanufacture of dutiable final product, refund cannot be given. I further find that refund of CVD and SAD in question is allowable, as credit is no longer available under the GST regime, which was however available under the erstwhile regime of Central Excise prior to 30.06.2017. Accordingly, I hold that the appellant is entitled to refund under the provisions of Section 142(3) and (6) of the CGST Act,” the bench observed.
“Accordingly, I direct the jurisdictional Assistant Commissioner to grant refunds to the appellant of the amount of SAD & CVD as reflected in the show causes notices and also in the orders-in-appeal. Such refund shall be granted within a period of 45 days from the date of receipt of order alongwith interest under Section 11BB of the Central Excise Act. The impugned orders are set aside,” the bench concluded.
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