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3w ago

Supreme Court Stays Bombay HC Order Blocking ₹256.45 Crore Refund

Clarifying that high courts lack jurisdiction in revenue disputes, the ruling allows the Revenue Department to seek appeal under Section 35L of the Central Excise Act.

The court also asked the government to explain why it had not approached the Supreme Court directly after the CESTAT passed its order on January 24, 2025. (Hindustan Times)
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Overview

  • The Supreme Court’s June 20 interim order suspends the Bombay High Court’s June 12 directive that had frozen the CESTAT refund process.
  • A bench of Justices Ujjal Bhuyan and Manmohan ruled that high courts cannot act as custodians of the revenue department or bypass statutory remedies.
  • The Customs, Excise and Service Tax Appellate Tribunal had directed a ₹256.45 crore cash refund to Tenormac Enterprises in May following its January victory.
  • Despite noting its own lack of jurisdiction under Section 35G of the Central Excise Act, the Bombay High Court imposed an eight-week stay to protect potential recovery if the amount was disbursed.
  • The decision permits the Revenue Department to file a Section 35L appeal with the Supreme Court, which will resume hearings on July 2.