2012 (9) TMI 920 - HC - Central Excise

Denial of refund claim - Refund of unutilized CENVAT Credit - High Court admitted the appeal of Revenue against the decision of Tribunal wherein Tribunal held that assessee is eligible for the refund of unutilised accumulated credit on opting out of Modvat Scheme excluding the reversed credit involved in inputs work in process and finished goods lying in stock on the date of opting out of Modvat Scheme. High Court admitted the appeal on following substantial questions of law - Whether in the facts and circumstances of the case and in law the Tribunal is justified in allowing the appeal of the Respondent and holding that the Respondent is entitled for refund in cash when in fact and as a matter of fact the Respondent failed to prove that the said accumulated balance of Cenvat credit is due to the duty free clearance of the goods exported? Whether in the facts and circumstances of the case and in law the Tribunal is justified in allowing the appeal of the Respondent for refund claim when the Respondent failed to discharge their burden under Rule 5 of the CENVAT Credit Rules 2004? Whether in the facts and circumstances of the case and in law the Tribunal is justified in following the judgment of Karnataka High Court in the case of Union of India v. Slovak India Trading Co. Pvt. Ltd. reported in 2006 (7) TMI 9 - HIGH COURT OF KARNATAKA (BANGALORE) when the facts in the said case and that in the present case are distinct and different and the ratio in the said judgment does not apply to the present case? Whether in the facts and circumstances of the case and in law the order of CESTAT is contrary to the evidences on record and hence perverse?

Summary

The Bombay High Court admitted the case based on substantial questions of law regarding the Tribunal's decision to allow the respondent's refund claim for Cenvat credit without proving duty-free clearance of exported goods. The Tribunal's decision was also questioned for not following a relevant judgment and being contrary to the evidence on record.