Order date: 07 Aug 2025 
Parties: M/s Rajshree Global Pvt. Ltd. v. Commissioner (Appeals), CGST, Jaipur

Facts -

• The appellant, having defaulted in export obligations under the EPCG scheme, paid back duties (CVD, SAD, cess) along with interest in 2019.
•  The appellant had filed the refund claim dated 18.09.2019 seeking refund of interest of Rs. 51,59,786/- under Section 142 CGST Act on the countervailing duty (CVD) and special Additional Duty (SAD) paid by the appellant on the goods imported by it under the EPCG authorization.   
• The claim was rejected by the adjudicating authority and upheld in appeal.

Issue -

• Whether refund of interest paid on delayed duty under EPCG after GST implementation is admissible under Section 142 CGST Act.

Order -

• The CESTAT held that had the appellant paid duty on the imported goods at the time of import, it could have availed CENVAT credit of the CVD and SAD so paid and could have used the CENVAT credit to pay excise duty on the goods manufactured by it. But the appellant paid CVD and SAD after the introduction of the goods and services tax in 2017 and the Central Excise Act, 1944 and the CENVAT Credit were no longer in the law.
• Further, Section 142 of CGST preserves refunds only if a right existed under the earlier law; no such right to refund of interest existed.
• CENVAT credit provisions allowed refund/credit of duty, but not interest—hence no accrued right.
• The liability to pay interest arose solely due to default in export obligations; it is not refundable under transition provisions. The rejection of refund was upheld, and the appeal dismissed.