TMI Blog2016 (6) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer the same to others, in such circumstance, it may be considered that the duty element paid by the assessee to the treasury shall serve no useful purpose of the taxpayer in the event of closure of the unit or impossibility of adjustment. The State should not be enriched at the cost of the citizen in such circumstance. In the result, appeal is allowed and refund is admissible. - Appeal N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT credit where input credit does not relate to manufacture of exportable goods or intermediate cleared for export. Rule 5 confines its scope to permissibility of the refund only in respect of exportable goods. When the input credit is availed to manufacture goods for domestic clearance, unutilized CENVAT credit is not refundable in absence of any statutory provision in law. 3. Heard both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either production nor clearance of finished goods due to closure of the company. The Court considered grant of relief on the premise that in absence of any prohibition in terms of Rule 5, refund is permissible. But, it may be stated that scope of Rule 5 is confined to exportable goods. That does not take care of the domestic clearances. Therefore, when the credit is not questioned as ungenuine and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the case, the judgment of the Hon ble High Court of Andhra Pradesh in the case of CCE, Hyderabad Vs. Apex Drugs Intermediates Ltd. 2015 (322) ELT 834 (A.P) has been placed in the Bar. That being a case relating to exportable goods that is covered by Rule 5 and quite distinct on facts from the decision in the case of Hon ble High Court of Karnataka (supra). 6. In the result, appeal is allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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