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2024 Supreme(Online)(DEL) 19108
HIGH COURT OF DELHI
Sanjeev Sachdeva, Ravinder Dudeja, JJ
M S BHARAT UDYOG THROUGH ITS PARTNER – Appellant
Versus
UNION OF INDIA & ORS. – Respondent
W.P.(C) 4790/2024
S. SUNIL
Refund of pre-deposit mandated by Board Circular when appeals are decided in favor of the assessee and remanded.
Headnote:(A) Central Excise Act, 1944 - Refund of pre-deposit amount - Petitioner seeks quashing of order dated 20.11.2023 returning refund claim as premature - Board Circular dated 10.03.2017 mandates refund of pre-deposit with interest when appeals are decided in favor of the assessee and remanded - Court to consider the implications of the circular. (Paras 1-3)
(B) Appeal - The court is tasked with determining the validity of the order returning the refund claim and the applicability of the Board Circular. (Paras 1-3)
Facts of the case:
The petitioner deposited a pre-deposit amount for an appeal disposed of on 20.06.2016, which was set aside and remitted for fresh consideration.
Findings of Court:
The court will assess the validity of the order returning the refund claim based on the Board Circular.
Issues: The main issue is whether the refund claim is premature given the Board Circular's provisions.
Ratio Decidendi: The court will evaluate the applicability of the Board Circular regarding the refund of pre-deposit amounts when appeals are remanded.
Result: Notice issued.
% 03.04.2024
1. Petitioner seeks quashing of order dated 20.11.2023 whereby refund claim of the petitioner seeking refund of the pre-deposit amount has been returned on the ground that the same is pre-mature.
2. Learned counsel for the petitioner submits that petitioner had deposited the pre-deposit amount for hearing of his appeal and the appeal was disposed of on 20.06.2016 by setting aside of the order in original and remitting the matter to Assessing Authority for a fresh consideration.
3. Learned counsel relies upon a Board Circular dated 10.03.2017 interalia paragraph 26 (iv) wherein the Central Board of Excise and Customs, New Delhi has mandated that where the appeals are decided in favour of the assessee and the matter is remanded, the assessee shall be refunded the pre-deposit amount with interest.
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4. Issue notice.
5. Notice is accepted by learned counsel appearing for the respondents who prays for time to take instructions.
6. At request, list on 03.05.2024.
