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2009 (12) TMI 420 - AT - Central ExciseAppeal to appellate Tribunal- Refund- The Assistant Commissioner vide orders-in-original sanctioned the refund of these amounts but ordered payment through recredit to the cenvat credit account. In other words both the refunds were sanctioned by recredit to the cenvat credit amount of the respondent, while the respondent had pleaded for refund in cash. The Assistant Commissioner had ordered the refunds through recredited in the cenvat account on the ground that both the amounts of pre-deposit have been paid by way of debit in the cenvat credit account and not through PLA. The respondent filed appeals before the Commissioner (Appeals) and in the appeals also prayed for interest on the refund amount for the period of delay. It was pleaded before CCE (Appeals) that when amounts have been paid through cenvat credit, the unit was functional, but by the time these amounts became refundable, the unit has closed down and had shifted to Baddi, where the unit avails of hill area exemption and cannot avail cenvat credit and that the unit, therefore; was not in a position to utilize to utilize any cenvat credit. Held that- as assessee had shifted their unit to place where they were availing hill area exemption and were not in position to avail credit. Refund of pre-deposit amount upheld. Since assessee had started to avail exemption at time of refund and were not able to utilize Cenvat Credit, such refund was meaningless for them. O grant of refund in cash, assessee had entitled to interest for delay in its grant.
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