2005 (11) TMI 402 - AT - Central Excise

Summary

Issues:
1. Eligibility of refund claimed by assessees.
2. Creditability of refund under PLA account.
3. Comparison with cases involving modvat/cenvat accounts.
4. Upholding of refund through PLA account.

Analysis:
Issue 1: The appeal concerns the eligibility of the refund claimed by the assessees. The Commissioner (Appeals) had held the refund to be eligible, but the revenue contested this decision.

Issue 2: The main contention revolved around the creditability of the refund under the PLA account. The assessees were working under a compounded levy scheme and were not maintaining the RG 23C Account. The Commissioner (Appeals) upheld the plea for the refund amount to be paid in PLA by cash, which was challenged by the revenue.

Issue 3: The Tribunal referred to a case involving modvat/cenvat accounts, where the refund was upheld to be granted by cash. The Consultant argued that since the amount was paid under PLA, the credit should be made in the PLA account, as per the Commissioner (Appeals)'s order.

Issue 4: After careful consideration, the judge found no merit in the revenue's appeal. It was noted that the assessees had paid the amount through PLA and were not maintaining the RG 23C Account due to the compounded levy scheme. The judge highlighted that in cases where modvat/cenvat accounts were maintained, the Tribunal had upheld the grant of refund by cash. Therefore, the Commissioner (Appeals) rightly upheld the assessees' plea for refund through the PLA account, leading to the rejection of the revenue's appeal.