M/S.Mani Nagappa Motors vs. The Commissioner

Held

The Court held that the petitioner is entitled to a refund of the pre-deposit amount of Rs. 4,33,000/- along with appropriate interest. This decision was based on the admission by the Assistant Commissioner of Central, CGST and Central Excise, Madurai II Division, as recorded in their letter dated March 21, 2019. The Court directed the second respondent (Assistant Commissioner) to refund the sum of Rs. 4,33,000/- together with appropriate interest in accordance with Central Board of Excise and Customs Circular No. 984/8/2014-CX dated 16.09.2014. The refund was ordered to be processed within two weeks from the date of receipt of a copy of the order. The Writ Petition was disposed of with this direction.

Facts

The petitioner, M/s Mani Nagappa Motors Madurai Private Limited, filed a writ petition seeking a direction for the refund of a pre-deposit amount of Rs. 4,33,000/- paid by them, along with applicable interest. The petitioner had made a representation to the Assistant Commissioner on March 3, 2017, requesting this refund. The respondents, represented by the Commissioner and Assistant Commissioner of Customs, Central Excise and Service Tax, Madurai, acknowledged in a letter dated March 21, 2019, that the sum of Rs. 4,33,000/- along with appropriate interest is payable to the petitioner. This letter indicated that the refund would be processed shortly.

Key Issues

1. Whether the petitioner is entitled to a refund of the pre-deposit amount of Rs. 4,33,000/- along with interest at the prescribed rate, as per the representation dated 03.03.2017 and Central Board of Excise and Customs Circular No. 984/8/2014-CX dated 16.09.2014? Petitioner's Contention: The petitioner argued that they are entitled to the refund of the pre-deposit amount paid, along with interest, as per their representation and the relevant circular. Respondents' Contention: The respondents, through a letter from the Assistant Commissioner, admitted that the pre-deposit amount along with appropriate interest is payable to the petitioner and indicated that it would be paid shortly. No specific arguments against the refund were recorded.