M/S Broad-Son Commodities Private Limited vs. The Union Of INDIA Through The Chief Commissioner
Held
The Court acknowledged that the refund due to the petitioner was being withheld because the Revenue's appeal was pending before the CESTAT, Kolkata. While ordinarily the Court might have directed the release of the refund, considering the specific facts and circumstances, the Court found it prudent to request the CESTAT for an expeditious hearing of the pending appeal. The Court did not decide on the merits of the refund claim or the Revenue's appeal. The operative direction was to request the CESTAT to decide the Revenue's appeal expeditiously, not later than three months from the date of production of a copy of the High Court's order. The Court disposed of the writ petition with this request.
Facts
M/s Broad-Son Commodities Private Limited (the petitioner) filed a writ petition before the Patna High Court seeking the release of a refund. The refund was being withheld by the revenue authorities. The reason for withholding the refund was that an appeal preferred by the Revenue was pending before the Customs, Excise and Service-Tax Appellate Tribunal (CESTAT), Kolkata. The petitioner contended that the refund due to them was being unjustly withheld solely on the ground of this pending appeal. The High Court noted that it was not in dispute that the Revenue's appeal was pending before the CESTAT.
Key Issues
1. Whether the withholding of a refund due to a petitioner is justified solely on the pendency of an appeal filed by the Revenue before the Customs, Excise and Service-Tax Appellate Tribunal? (Question of law) The petitioner argued that their refund was being withheld without proper justification, as the pendency of the Revenue's appeal before the CESTAT should not be a ground to deny them their legitimate dues. The petitioner sought the release of the refund. The revenue authorities contended that the appeal filed by them before the CESTAT was the reason for withholding the refund. They did not present any further arguments or elaborate on the grounds for withholding the refund beyond the pendency of their appeal.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.15024 of 2022 ====================================================== M/s Broad-Son Commodities Private Limited Having its registered office at Dr. Himanshu Complex, Block Road, Koilwar Chowk, Arrah, Police Station- Arrah, District- Bhojpur, Bihar through its authorized Signatory and one of the Directors namely Sri Ashok Kumar (Male), aged about 67 years, Son of Late Ram Chandra Saw, resident of Pareo, Post Office- Pareo, Police Station- Pareo, District- Patna. ... ... Petitioner/s Versus
The Union of India through the Chief Commissioner Customs, Central GST and Central Excise, Patna, 2nd Floor, C.R. Building (Annexe), Bir Chand Patel Path, Patna.
The Chief Commissioner, Customs, Central GST and Central Excise, Patna, 2nd Floor, C.R. Building (Annexe), Bir Chand Patel Path, Patna.
The Principal Commissioner, Customs, Central GST and Central Excise, Patna-1, Patna.
The Commissioner, Central GST and Central Excise, Patna-1, Commissionerate, Patna, 3rd Floor, C.R. Building (Annexe), Bir Chand Patel Path, Patna.
The Commissioner (Appeals), Customs, Central GST and Central Excise, Patna, 2nd Floor,
The judgment continues below.
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