Order Date: 30 June 2022

Facts:

• The appellant, Khurana Engineering Limited, contends that the demand case against which the amount was deposited during investigation and for the same the refund was sought for has been settled in favour of the appellant by this Tribunal as on date, therefore, the appellant are entitled for the refund.
• The appellant’s refund claim of the amount deposited during the investigation was rejected and same was upheld by the Commissioner (Appeals), on the ground that the case against which the deposit was made not decided at that time, therefore, the refund was rejected as premature.

Issue:

• The issue in this case is whether the refund was rightly rejected on the ground of premature?

Order:

• The Tribunal observed that after passing both the orders by the lower authorities there is a change in circumstances in as much as in the case wherein the amount was deposited for which the refund pertains has been settled in favour of the appellant, therefore, now it cannot be said that the refund is premature. However, since, the lower authorities have rejected the claim on the premature ground, the entire refund needs to be processed a fresh as per the present circumstances.
• Accordingly, the impugned order is set aside and matter remanded back to the adjudicating authority for passing a fresh order on the refund filed by the appellant in accordance with law.