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2022 (12) TMI 1140 - AT - Central ExciseClaim for monetization of the restored CENVAT credit as approved by the Hon’ble High Court of Karnataka in circumstances of closure of the factory of the appellant - operation of rule 8(3A) of Central Excise Rules, 2002 (as existing then) withdrawing privilege of consolidated payment at the end of each month as well as of discharge through CENVAT credit till the default is made good along with interest - HELD THAT:- The duty liability, on which CENVAT credit is availed, is nothing but the leviability discharged in accordance with section 3 of Central Excise Act, 1944 on clearances effected by the supplier - manufacturer and refund of that amount would be tantamount to negating the correctness of that levy. CENVAT Credit Rules, 2004 does not, for this reason, envisage any erosion of credit availed except by utilization towards duty liability under rule 3(4) thereof, by refund under rule 5 thereof or by recovery for ineligible availment under rule 14 thereof. To accede to the plea of the appellant herein would be to discard the leviability of duty/tax on manufacture/supply of goods/services procured by the appellant. The appeal lacks merit and, for that reason, is dismissed.
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