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2016 (8) TMI 293 - CESTAT BANGALORE

2016 (8) TMI 293 - CESTAT BANGALORE - 2017 (347) E.L.T. 100 (Tri. - Bang.) - Refund of unutilized Cenvat credit - closure of factory - due to suffering heavy losses, the appellants stopped their production - surrender of registration certificate - Held that:- in view of the decision of Hon'ble High Court of Karnataka in the case of Union of India V. Slovak Trading Co. Pvt. Ltd. [2006 (7) TMI 9 - KARNATAKA HIGH COURT] which was affirmed by Supreme Court in [2007 (1) TMI 556 - SUPREME COURT], ther .....

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For the Respondent : Mr. J. Harish, AR ORDER Per S. S. Garg The present appeal is directed against the impugned order passed by learned Commissioner vide its order dated 24.4.2008 vide which the appellant s appeal was dismissed by upholding the Order-in-Original. Brief facts of the present case are that the appellant is a private limited company registered under Companies Act, 1956 and is engaged in the manufacture of ACSR conductors. Owing to lack of business for their excisable products and d .....

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rred a refund application on 6.8.2007. Thereafter appellant was issued a show-cause notice wherein the Department proposed to deny the CENVAT credit on the surrendering the registration certificate, as there was no provision in the Central Excise law for refund of lapsed credit. Thereafter the adjudicating authority rejected the refund claim of the appellant and aggrieved by the said order, the appellant filed an appeal before the Commissioner (A) who upheld the order of the lower authority on t .....

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out considering provisions of refund in accordance with law and the judgments of the various judicial fora. In support of his submissions, the learned counsel for the appellant relied upon the following decisions: a) Union of India V. Slovak Trading Co. Pvt. Ltd. 2006 (201) E.L.T. 559 (Kar.) affirmed in 2008 (223) E.L.T. A170 (SC) b) CCE V. Apex Drugs & Intermediaries Ltd. 2015 (322) E.L.T. 834 (A.P) c) CCE V. Apex Drugs & Intermediaries Ltd. 2014 (314) E.L.T. 729 (Tri.-Bang.) d) CCE V. .....

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ned in the instant case also: a) Whether under the facts and circumstances of the case the Tribunal is right in ordering for refund even if there is no provision in Rule 5 of Cenvat Credit Rules 2002, to refund the unutilized credit? b) Whether under the facts and circumstances of the case the Tribunal is right in ordering for refund even if there is no production and there is no clearance of finished goods? c) Whether under the facts and circumstances of the case the Tribunal is right in holdin .....

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ruled by the Tribunal. The Tribunal has noticed that various case laws in which similar claims were allowed. The Tribunal, in our view, is fully justified in ordering refund particularly in the light of the closure of the factory and in the light of the assessee coming out of the Modvat Scheme. In these circumstances, we answer all the three questions as framed in para 17 against the Revenue and in favour the assessee. 2.1. The learned counsel further submitted that the question whether the cash .....

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made as per Section 11B of the Central Excise Act. The learned counsel further submitted that the judgments of the Karnataka High Court which was affirmed by the Supreme Court has been relied upon in the case of CCE, Hyderabad Vs. Apex Drugs & Intermediates Ltd. reported in 2014 (314) E.L.T. 729 and the same has been affirmed by the High Court of Andhra Pradesh reported in 2015 (322) E.L.T. 834 and has also been followed by the Bombay Bench of the Tribunal in the case of Century Rayon Twisti .....

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) and submitted that on closure of the business of the appellant, the unutilized cenvat credit would lapse and in support of his submission he relied upon the following authorities: a) Purvi Fabrics & Texturise (P) Ltd. Vs. CCE, Jaipur-II 2004 (172) E.L.T. 321 (Tri.-Del.) b) Purvi Fabrics & Texturise (P) Ltd. Vs. CCE, Jaipur-II 2015 (319) E.L.T. 551 (S.C) c) Modipon Ltd. Vs. CCE, Ghaziabad 2015 (324) E.L.T. 718 (Tri.-Del.) d) Nav Durga Steel Products Vs. CCE, Chandigarh 2014 (309) E.L.T. .....

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letter of undertaking, as the case may be, or used in the intermediate product cleared for export, or used in providing output service which is exported, the cenvat credit in respect of the input or input service so used shall be allowed to be utilized by the manufacturer or provider of output service towards payment of, (i) Duty of excise on any final product cleared for home consumption or for export on payment of duty, or (ii) Service tax on output service, and where for any reason such adju .....

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