Lapse of Refund claims filed and rejected under earlier law after GST : Issues and Suggestions

Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India

46. Lapse of Refund claims filed and rejected under earlier law

Section 142(3) of CGST Act, 2017 provides that every claim for refund filed by any person before, on or after the appointed day, for refund of any amount of CENVAT credit, duty, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944:

Provided that where any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse

Issue

Lapse of fully or partially rejected CENVAT Credit shall put a financial hardship to the assessee if he is not given an opportunity of being heard and/or filing of appeal against such rejection.

Suggestion

It is suggested that assessee be given an opportunity of being heard and/or filing of appeal against such rejection.

Read ICAI Suggestions on GST Act to Govt : July 2017

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