Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 54 - AT - Central ExciseRejection of cash refund claim of unutilized credit - refund claim was rejected on the ground that as per Rule 57(13) it is not necessary to allow refund if manufacturer is able to use the credit for payment of duty - Rule 57F(1) of Central Excise Rules, 1944 - HELD THAT:- On perusal of facts, it is seen that the refund claim was originally returned to the appellant stating that they could use the accumulated balance credit for payment of duty on goods cleared for home consumption. The appellant approached the department to process the refund claim and pass a speaking order. Interestingly, thereupon Order in Original No. 108/199 was passed rejecting the refund holding that there is no balance to sanction refund. As per the appeal preferred by the appellant, the matter was remanded to the original authority with a direction to issue Show Cause Notice and re-examine the claim. I fail to understand why repeated Show Cause Notices have been issued even though it is a remand by the first appellate authority. The department then opted to adjudicate the second Show Cause Notice and rejected the claim stating that there is delay on the part of the appellant to press for processing of the claim. How can the appellant be said to be at fault when the matter has been remanded by Commissioner (Appeals) directing to re-examine the matter after issuing Show Cause Notice. After hearing the matter on 8.9.2022, it was posted for clarification on the side of the department as to whether there is a dispute with regard to the balance available in their register as on the date of filing the refund claim. The department has not put forward any reply or clarification. From the arguments put forward by the learned counsel for appellant and also the photocopies of the relevant part of the registers furnished by the learned counsel for the appellant, I find that the contention of the appellant that there was wrong debit entry and contra credit entry made in the registers is not without substance. From the letters written by the appellant to the department, it is seen that they have produced these documents before the authorities below also. The rejection of refund claim is on erroneous facts and misconception of Rule 57F of Central Excise Rules, 1944 - Appeal allowed - decided in favor of appellant.
|