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2019 (3) TMI 974 - AT - Central ExciseCENVAT Credit of differential duty - Refund - price increase on goods stock transferred during the quarter April 2008 to June 2008 - closure of factory - Held that:- The accumulation of CENVAT Credit in the CENVAT account is done over a period of time by a manufacturer by taking Credit of the duty suffered on inputs, capital goods and eligible input services. Thus, this Credit balance is built up and assiduously gathered over time. In the normal course, this Credit would have been utilized towards discharge of duty liability on goods that may be manufactured and cleared or taxable services provided/received. The closure of the factory should not be allowed to snatch away that amount from the manufacturer. The availment of CENVAT Credit and its utilization is akin to a fundamental right in the area of indirect taxation. It has been time and again reiterated that CENVAT Credit is as good as a cash balance, to be utilized for the discharge of duty liability in lieu of actual cash. If a factory of a manufacturer has closed down for no fault of theirs, the unutilized Credit, which rightfully belongs to the manufacturer, cannot be denied to them when claimed by way of refund. The issue in dispute is no longer res integra and it has now been conclusively settled by both the Hon’ble High Court and the Hon’ble Apex Court that pursuant to closure of a factory, the manufacturer can avail refund claim for the unutilized CENVAT Credit lying in the balance. Appeal allowed - decided in favor of appellant.
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