CESTAT advises authorities to process refund claims appropriately

CESTAT advises authorities to process refund claims appropriately

The reimbursement amount of the assessee was rejected for not producing the chartered accountant's certificate

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the concerned authorities would have to process the refund claims in an appropriate manner. This is required, as the interest on the delayed refund amount is paid out of public money.

The appellant, Ingram Micro India Ltd had, in 2009, applied for a refund of the amount it paid as Customs duty. But in 2012, the authorities rejected the refund claim stating that the appellant did not produce the chartered accountant's (CA's) certificate. It was to prove that the burden of the 4 percent additional duty had not been passed on to a buyer. The appellant, therefore, approached the tribunal challenging the order.

CESTAT's Judicial Member Sulekha Beevi observed that the refund claim was rejected merely on the ground that the appellant had not produced the CA's certificate.

She stated, "I find that the authorities have not cared to peruse the documents submitted by the appellant. The refund claim has been rejected in a cryptic manner. It is to be borne by the authorities that interest on such delayed refund is paid out of public money. Therefore, such claims have to be processed in a proper manner after perusing the documents produced by the claimants. Herein, though the refund claim was received in June 2009, the adjudicating authority passed the order three years later."

Noting that the adjudicating authority should have conducted a personal hearing to ensure if the appellant had furnished the necessary documents, before rejecting the appeal, CESTAT said, "Besides the liability to pay interest, both sides incur litigation expenses, of which, the expense of the department is borne by the public exchequer. Unnecessary litigations such as these have to be avoided."