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2014 (5) TMI 644 - AT - Central ExciseArea based exemption - Denial of refund claim - Chargeability of interest on the recovery of inadmissible refund - refund of Education Cess/SHE Cess under Notification No. 39/2001-CE - Held that:- cash refund of duties imposed under the Central Excise Act, 1944, Additional Duties of Excise (Goods of Specified Importance) Act, 1955 and Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, is only admissible. There is no mention of refund of Education/SHE Cesses in Notification No.39/2001-CE, dt.31.07.2001. Further, as per the provision of Clause 2(a) of this notification, no cash refund is available to a manufacturer with respect to the duties paid by utilizing the CENVAT Credit under CENVAT Credit Rules, 2001. Therefore, legally not only Education/SHE Cesses are ineligible to cash refund but also it will not be correct to say that the entire Basic Excise Duty is exempted and that accordingly no Education/SHE Cess should be payable or will be refundable - refund of Education/SHE Cesses, under Notification No.39/2001-CE, dt.31.07.2001, has been correctly denied by the lower authorities. - Decided against the assessee. Once Coating Section was held to be in-eligible for exemption under Notification No.39/2001-CE, then the refund earlier sanctioned with respect to Coating Section becomes a case of erroneous refund. Such a refund pertaining to the Coating Section was a refund beyond the scope of Notification No.39/2001-CE. In such circumstances, inadmissible refund has to be considered as an erroneous refund recoverable under Section 11A of Central Excise Act, 1944 and appropriate rate of interest will be accordingly applicable on the amount retained by the appellant M/s PSL Ltd. - Decided in favor of revenue. Denial of Cenvat Credit - Held that:- Appellant failed to prove that inputs/services have been used in the coating division and that invoices/bills in respect of which credit is taken were in respect of the Paper Mill Division and not Coating Division - Matter remanded back - Decided in favour of assessee.
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