CESTAT Directs Central Excise Dept. To Reconsider Refund of Cenvat Credit To Tata Consumer Products

The appellant/assessee, a 100% export-oriented unit (EOU), has been engaged in the manufacture and export of tea bags and packet tea. The appellant filed a refund claim for an amount of Rs. 14,11,916 for the period April 2015 to June 2015 under notification dated 18.06.2012 for refund of cenvat credit availed on input services used for the manufacture of final products, which were cleared for export under bond.

The Assistant Commissioner observed that the appellant was eligible for a refund of Rs. 13,95,891, but sanctioned only an amount of Rs. 10,60,268 by rejecting the balance amount of Rs. 3,51,648.

The appellant approached the First Appellate Authority and pleaded that the appellant had inadvertently mentioned the balance cenvat credit available as on the date of filing its refund claim as Rs.10,60,268 as against the actual Rs.14,50,277.

The appellant submitted an extract of the ledger indicating the exact amount lying in the cenvat credit account. The Commissioner (Appeals) has rejected the refund claim.

The ITAT found that though the appellate authority had taken note of the claim of the appellant as regards the inadvertent/clerical error, it had not accepted it on the ground that it was not brought to the notice of the adjudicating authority.

The Tribunal said it would meet the ends of justice if the matter was sent back to the file of the adjudicating authority, who shall verify the inadvertent error which was not disbelieved by the First Appellate Authority and who shall also verify the closing balance in the cenvat credit as on the date of the appellant's claim as appearing in the appellant's books.

Case Title: Tata Consumer Products Ltd. Versus Commissioner Of Central Tax & Central Excise

Citation: Central Excise Appeal No. 20057 of 2021

Dated: 11/03/2022

Counsel For Appellant: Advocate Abraham Markos

Counsel For Respondent: Superintendent (AR) Rama Holla

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