Amount Deposited In The Personal Ledger Account Until It Is Not Debited Towards Duties Is Property Of The Assessee: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the amount deposited in the Personal Ledger Account (PLA) until such time as it is not debited towards duties is the property of the appellant.

The bench of Anil G. Shakkarwar (Technical Member) has observed that the amount deposited in PLA is an advance kept by the assesses with the exchequer, and only when an amount is debited in PLA is it treated as payment of duty. The limitation will be applicable for such a large number of debits that actually become duties.

The issue involved in the present appeal is related to the refund of unused funds in the current account, which is popularly known as a personal ledger account (PLA).

As of the end of June 2017, Rs. 46,968 was left in PLA, and with the introduction of GST on July 1, 2017, appellants were not in a position to utilize the amount in PLA for the discharge of central excise duty. Therefore, the appellant submitted an application for a refund of the amount left over in PLA on November 20, 2018. The refund was rejected by the appellant on the ground of limitation.

The CESTAT held that the amount that is not debited in the PLA is not the duty, and therefore, the limitation does not apply to it.

The tribunal held that the balance left over in the PLA is not covered by limitation.

The CESTAT, while setting aside the order, directed the original authority to issue a refund cheque to the appellant within a period of four weeks from the date of receipt of the order.

Case Title: M/s Hariwansh Packing Products Versus Commissioner of CGST & Central Excise Nagpur-I

Citation: Excise Appeal No. 88127 of 2019

Date: 28.02.2023

Counsel For Appellant: P. V. Sadavarte

Counsel For Respondent: Amrendra Kumar Jha

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