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2023 (10) TMI 351 - HC - Central ExciseRefund claim - unspent amount lying in the current account (PLA) of an assessee - amount is merely an advance amount for payment of excise duty or is actually or shall be deemed to be “Excise Duty” for the purpose of claim of refund - HELD THAT:- As is evident from bare reading of Section 3 of CEA, in particular sub-section 1 thereof, duty of excise is leviable on all excisable goods which are produced or manufactured in India in the manner prescribed and at the rates set forth in Fourth Schedule. It is, thus, crystal clear that event of levy and collection of duty of excise is the production and manufacture of the excisable goods though, as prescribed, the duty is actually paid by the manufacturer at the stage of removal of excisable goods from the manufacturing unit or production house as the case may be. The amount credited into the current account (PLA) by an assessee is, in a way, prospective excise duty to be utilized by the assessee at the stage of removal of excisable goods from his manufacturing unit from time to time. From careful perusal of sub-Section 2 along with proviso thereof, it clearly comes out that the refund of duty of excise claimed by an assessee may be credited to the welfare fund except when such refund is relatable inter alia to unspent advance deposits lying in balance in applicant’s current account maintained with the Principal Commissioner of Central Excise or Commissioner of Central Excise - The term “unspent advance deposit” would mean, “unspent advance deposit of excise duty” refund whereof can be claimed by an assessee under Section 11B read with Rule 173G. Such refund in terms of proviso to Section 11B (2) is required to be made by tendering payment directly to the applicant-assessee. Hon’ble Supreme Court in the case of Modipon [2017 (11) TMI 1429 - SUPREME COURT] answered the question in the context of provisions of Section 43-B of the Income Tax Act, nonetheless, what was held qua the amount lying in PLA is binding here - From the judgment of Supreme Court, it is now beyond any pale of discussion or debate that the amount credited by the asseessee in the account current is “duty of excise” paid in advance in respect of excisable goods manufactured to be paid by debit to such account at the stage of actual removal of excisable goods from the manufacturing unit. Once it is held that the unspent amount in “PLA” is duty of excise, a fortiori Section 11B and Section 11BB would be attracted. If the refund claimed on account of unspent amount in PLA is not paid within three months, it shall become payable with interest till it is actually paid. The respondents to pay to the petitioner interest at the rate of 6% per annum from the date of application till the order of refund within a period of two months from today - Petition allowed.
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