Order date – 05 January 2023

Parties: M/s. Sun Metallics & Alloys Pvt. Ltd Vs Commissioner of CGST & Central Excise, Thane Rural

Facts –

• The Appellant, M/s. Sun Metallics & Alloys Pvt. Ltd. during investigation paid Rs.10,50,329/- in cash towards reversal of Cenvat credit, interest and penalty somewhere in the year 2010. 
• The refund claim was rejected on Rs.2,17,946/- on account of beyond limitation, however refund was sanctioned to the extent of Rs.8,32,383/- but was transferred to the a/c of ‘Consumer Welfare Funds’ on the ground of principles of unjust enrichment for non-production of evidence in order to establish that the incidence of duty has not been passed on to the buyers or otherwise.

Issue –

• Whether the appellant is entitled to refund claim towards reversal of Cenvat credit, interest and penalty?

Order –

• The Tribunal observed that from the speed post receipt it is evident that they have filed the refund claim of the amount of Rs.2,17,946/- within limitation in the year 2017 itself and accordingly the said issue is decided in favour of the appellant.
• The Tribunal in respect of refund claim Rs.8,32,383/- observed that a bare perusal of proviso to Section 11(2) would denote that instead of crediting the amount of refund to the fund, it can be paid to the applicant seeking refund, if such amount is relatable, inter alia, to refund of credit of duty paid on excisable goods used as inputs in accordance with the rules made or any notification issued under this Act.
• In respect to the issue of unjust enrichment it was held that there is certificate of the Chartered Accountant as well as the affidavit of the appellant specifically provides that burden towards Cenvat credit, interest and penalty was never passed on to the consumers. Merely because the certificate is not as per the liking of the authorities below, it cannot be brushed aside as no specific format of certificate has been prescribed by the statute.
• Hence the appeal is allowed.