TMI Blog2008 (1) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order per: Chittaranjan Satapathy, Member (T)]. - Heard both sides. The issue involved in this case is whether the respondents are entitled to cash refund of the unutilized credit amount earlier transferred to the PLA Account. The lower appellate authority has decided the issue in favour of the respondents and has allowed cash refund leading to this appeal by the Department. 2. For considering the issue at hand, sequential narration of the following important events is necessary: (i) Till July 22, 1996 : Vanaspati was liable to Central Excise duty. The respondents were also entitled to avail credits in terms of notifications issued by the Central Government under Rule 57K and to utilize the said credits for payment of Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s above regarding the shifting of respondent's factory was also given to the Deputy Commissioner of Central Excise, Kolkata "D" Division. (ix) Aug. 7, 2002 : Central Board of Excise Customs issued a Circular bearing F. No. 267/72/96-Cx.8, inter alia, clarifying that money, credit available with any manufacturer can be utilized to pay Excise duty on any finished excisable product. (x) Till Feb. 28, 2003 (from July 23, 1996 ) : Vanaspati continued to remain liable to 'nil' rate of duty and therefore the respondents were not able to utilize the said accumulated credit. (xi) 1-3-2003 : During budget of 2003, by amending Notification No. 6/2002-C.E. by Notification No. 6/2002-C.E., dated 1-3-2003, Vanaspati bearing a brand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- from PLA which was rejected by the original authority. (xviii) 14-9-2006 : The lower appellate authority has allowed the refund claim. 3. We have heard the ld. Advocates appearing on behalf of the department and the respondents, respectively arguing in support and against the appeal filed by the department against the impugned order. The narration of the events in the earlier paragraphs clearly goes to show that had the department not prevented the respondents from utilizing the accumulated credit, they would not have paid the duty amount of Rs. 4,46,62,485/- from PLA in the first place. No doubt under the Money Credit Scheme, cash refund was not permissible but the accumulated credit could have been utilized for payment of du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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