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2017 (3) TMI 355 - CESTAT MUMBAICENVAT credit - Refund claim of the credit restored after reversal / restoration of disallowed credit - unjust enrichment - Held that: - CENVAT credit, and its utilisation, stands on different footing as this credit is a matter of right flowing from having paid duty or tax on goods or services procured for manufacture of goods or for rendering of services. Its avowed purpose of avoiding the cascading effects of taxation can be met only when it is passed on by utilising of such credit. Commercial exigency dictates that a lower price will stimulate a beneficial outcome for the seller and access to this credit enables that commercial objective. Hence credit, or re-credit, in the CENVAT account benefits the buyer and others in the chain and is, correspondingly, of no benefit to the seller. Accordingly, to even conceive that restoration of CENVAT credit is to be prevented as a matter of course is not in accordance with the fundamentals that motivated the incorporation of ‘value added’ in indirect taxation. It is only tax administrators who continue to hold fast to the hurdle of ‘unjust enrichment’ to deny rightful claims for restoration of CENVAT credit. Such obduracy is ill-founded. Appeal allowed - decided in favor of appellant.
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