2018 (8) TMI 1169 - HC - Central Excise

Refund of accumulated Cenvat Credit - closure of factory - Whether in the facts and circumstances of the present case, Appellate Tribunal was correct, in law, and justified in holding that there is no provision for allowing refund of accumulated Cenvat Credit on closure of the factory? - Rule 5 of the Cenvat Credit Rules, 2004.

Held that:- The principle of estoppel applies as once the department has accepted the view taken by the Tribunal it will not be appropriate to challenge the same by choosing the present assessee - the judicial discipline is required to be maintained. The Tribunal cannot distinguish the High Court judgments. They are bound by the High Court judgments even jurisdictional High Court and at the most they can refer it back prior to distinguish on facts but no authority has been made. Full Bench decision of the Tribunal has to be followed.

Reliance placed in the case of UNION OF INDIA VERSUS SLOVAK INDIA TRADING CO. PVT. LTD. [2006 (7) TMI 9 - KARNATAKA HIGH COURT], where Karnatake High Court has held that Tribunal is fully justified in ordering refund particularly in the light of the closure of the factory and in the light or the assessee coming out of the Modvat Scheme.

Appeal allowed - decided in favor of assessee.