2007 (5) TMI 650 - AT - Central Excise

Summary

Issues involved: Refund of unutilized Cenvat credit due to goods being exempted from payment of additional duty of Excise.

The appeal was filed against Order-in-Appeal No. ER(2982)364/MI/2005, where the Commissioner (Appeals) set aside the Order-in-Original and allowed the respondent's appeal.

The main issue in this case pertains to the refund of unutilized Cenvat credit due to goods being exempted from payment of additional duty of Excise. The Tribunal referred to previous decisions, including the case of Shree Prakash Textiles (Guj.) Ltd. v. CCE, Ahmedabad, which held that cash refund is permissible when credit on inputs cannot be utilized, as per the proviso to Section 11B(2) of the Central Excise Act, 1944. The Tribunal also cited the decision of the Hon'ble Karnataka High Court in the case of UOI v. Slovak India Trading Co. Pvt. Ltd., supporting the same view.

In line with the above decisions, the Tribunal upheld the Order-in-Appeal passed by the Commissioner (Appeals) and rejected the appeal, stating that there is no need for interference as the decision is correct and legal.

Ultimately, the Tribunal rejected the appeal filed by the Revenue, affirming the correctness of the Order-in-Appeal.