9911796707
TMI Blog2015 (2) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of Cenvat credit Rules 2004. The appellants factory stopped production in June, 2007 and at that time they had accumulated cenvat credit of Rs. 2,35,86,612/- in their RG 23A part II and RG 23C Part-II account. On 27/11/2007, the appellant filed refund claim invoking section 11 B (2)(C) of the Central Excise Act, 1944. The refund application mentions that the company has stopped production since June 2007 due to stiff competition, that the cenvat credit of Rs. 2,35,86,612/- in its cenvat credit account is lying unutilized, that there is no possibility utilizing said credit in any near future as there is no chance of resumption of the operations of the factory and therefore the company requests refund of the cenvat credit under clause (C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or for payment of duty on the goods cleared for export under rebate claim. Against this order of the Commissioner (Appeals) this appeal has been filed. 3. Heard both the sides. 4. Shri S.S. Dabas, Advocate, the ld. Counsel for the appellant, assailed the impugned order by mainly relying upon Hon ble Karnataka High Court judgment in the case of Slovak India Trading Co. Pvt. Ltd. (supra) and pleaded that in terms of this judgment of Hon ble Karnataka High Court, there is no express prohibition in Rule 5 of the Cenvat Credit Rules, 2004 against permitting cash refund of the accumulated cenvat credit, that for cash refund of the accumulated cenvat credit, it is not necessary that the cenvat credit should be in respect of the inputs used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for cash refund of the accumulated cenvat credit is Rule 5 of the Cenvat Credit Rules, 2004 and cash refund under this rule is permitted only of the cenvat credit which has accrued in respect of the input used in the manufacture of the finished goods which had been exported out of India under bond or LTU and which cannot be utilized for payment of duty on any goods cleared for home consumption or any goods cleared for export under rebate claim. He also pleaded that cash refund under Rule 5 of the Cenvat Credit Rules is also subject to various conditions specified in the Notification issued under this rule and one of the conditions which has to be satisfied is that the exports have not been made under draw back scheme or under input duty reb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other than Rule 5 of the Cenvat Credit Rules, 2004, there is no provision either in Central Excise Act, 1944 or in any Rules made there-under for cash refund of accumulated cenvat credit Rules, 2004. When a factory closes down, the cenvat credit lying unutilized in its cenvat credit account would lapse, unless the factory resumes production. In the event of the factory being taken over by another person, and resuming production, Rule 10 permits the transfer of cenvat credit to the new owner subject to certain conditions. But there is no provision for cash refund of such unutilized credit. 7. Rule 5 of the cenvat credit rules permits cash refund of accumulated cenvat credit only in the following circumstances:- (1). The cenvat credit whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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