ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 22.09.2025
CESTAT Kolkata Sets Aside Refund Demand
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, has delivered justice to M/s. Puyang Refractories Group Company (India) Pvt. β Ltd. by setting aside the impugned order demanding a refund amount of Rs. 11,64,043/-. The case, which revolved around procedural lapses and delayed issuance of a Show Cause Notice, highlights the importance of adhering to legal timelines and ensuring proper communication in adjudication processes. β
Background of the Case
The appellant, M/s. Puyang Refractories Group Company, was sanctioned a refund of Rs. β 11,64,043/- on 17.11.2014. β However, the Department later initiated proceedings to recover the refunded amount, alleging it was erroneously granted. β A Show Cause Notice was issued on 05.06.2017, nearly two and a half years after the refund was sanctioned. β Subsequently, the adjudicating authority confirmed the demand. β
The appellant contended that they were unaware of the proceedings as the Show Cause Notice and the Order-in-Original were not received by them. β It was only upon receiving a recovery letter in March 2019 that they requested a copy of the Order-in-Original, which was provided on 07.03.2019. β Acting promptly, the appellant filed an appeal on 22.04.2019. β However, the Commissioner (Appeals) dismissed the appeal, citing a delay in filing beyond the prescribed ninety-day period.
Source: CESTAT Kolkata
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