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2024 (1) TMI 932 - CESTAT AHMEDABADDebonding of 100% EOU - Validity of Show cause notice - Utilization of CENVAT Credit - payment of duty by 100% EOU can be paid from cenvat credit account while debonding the 100% EOU unit - HELD THAT:- At the time of de-bonding if there is any short fall of duty payment subsequent to the de-bonding of the unit, the custom/excise department is empowered to issue a show cause notice for which no approval of development commissioner is required for issuance of show cause notice, therefore, this submission of the appellant is not sustainable. Refund claim - amount paid from cenvat credit is otherwise refundable under Section 142 of CGST Act, 2017 or not - HELD THAT:- There is proper mechanism for filing refund claim and considering the merit of each case the sanctioning authority of GST department shall dispose of the refund, therefore, at this preliminary stage it cannot be decided that since the appellant can claim the refund of cenvat credit, the entire case is revenue neutral. However, the appellant have liberty to approach the GST authority to claim the refund, if any, in accordance with law. The cenvat credit can be utilized for payment of excise duty either on the finished goods or on the indigenous inputs. However, in case of imported inputs the additional duty of custom has to be paid in cash and not by debiting cenvat credit account in terms of Rule 3 of CCR, 2004 - the matter needs to be re-considered by the Adjudicating Authority - Appeal allowed by way of remand.
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