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2012 (4) TMI 521 - AT - Central ExciseDenial of refund - Refund frozen by the assessee - lower authorities have held that assessee cannot be granted refund in cash, as the assessee’s factory has closed down and there is no provision for refunding the amount in cash for such freezing amount in RG23 Part-II - Held that:- Madvat law has codified procedure for adjustment of duty liability against Modvat Account. That is required to be carried out in accordance with law and unadjusted amount in not expressly permitted to be refunded. In absence of express provision to grant refund, that is difficult to entertain except in the case of export. There cannot be presumption that in the absence of debarment to make refund in other cases that is permissible. Refund results in outflow from treasury, which needs sanction of law and an order of refund for such purpose is sine qua non. Law has only recognized the event of export of goods for refund of Modvat credit as has been rightly pleaded by Revenue and present reference is neither the case of otherwise due of the refund nor the case of exported goods. Similarly absence of express grant in statute does not imply ipso facto entitlement to refund. So also absence of express grant is an implied bar for refund. When right to refund does not accrue under law, claim thereof is inconceivable. Following decision of Steel Strips vs. CCE, Ludhiana [2011 (5) TMI 111 - CESTAT, NEW DELHI] - Decided against assessee.
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