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2020 (2) TMI 625 - AT - Central ExciseRefund of CENVAT Credit - denial on the ground that the same could have been adjusted against payment of tax on inputs and Cenvat Credit account was not debited at the time of making the claim - period January, 2012 to March, 2012 - HELD THAT:- The assessee had cleared goods for export under LUT as well as on payment of duty and therefore, there was opportunity on the part of the assesse to utilise accumulated credit for export of goods on payment of duty. Appellant had not denied the same but its only contention was that even after payment of all duties, it had accumulated Cenvat credit because of high rate of duty in the input and low rate duty in the output, which is required to be refunded. Going by Rule 5 of Cenvat Credit rule, it is manifestly cleared that refund is admissible where for any reason such adjustment is not possible. In the instance case, adjustment of 12% duty on inputs can never be made possible against 6% on output to bring the difference to ‘zero’ level. Therefore the Learned Commissioner (Appeals) should have refunded the balance amount which was available to the claimant as further adjustment was not possible. Appeal allowed - decided in favor of appellant.
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