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TMI Blog2016 (10) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... he entitlement of the respondent(s) (hereinafter referred to as the assessee) to the refund of excise duty, but has only contested the mode and manner of such refund, therefore, the seminal issue in all these petitions is whether the rebate claims of the assessee (s) were to be allowed in cash or sanctioned by way of re-credit. 3. However, before answering the question, brief facts as necessary for the disposal of these petitions may be noticed. 4. All the assessee(s) are engaged in the manufacture and export of cotton yarn and woven fabrics, both for domestic market as well as for export and excise duty leviable thereon was 16%. By a notification No.29/2004-CE dated 09.07.2004, the assessee(s) were granted relief in excise duty payable i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an order in another revision petition holding the assessee therein to be entitled to the rebate by way of re-credit into their Cenvat Credit Account instead of sanctioning the same in cash. Not only this, the said order has been upheld by the learned Division Bench of the Punjab and Haryana High Court at Chandigarh in CWP No.2235/2007 titled 'M/S Nahar Industrial Enterprises Ltd. versus The Union of India and another', decided on 11.09.2008 (Annexure P-7). It is further averred that the revisional authority has failed to take into consideration the various provisions of the Act, Rules and Instructions issued from time to time and has further erred in passing two contradictory orders. 10. On the other hand, learned counsel for the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital goods or deemed credit account. Subsequently, Board has been receiving representations from trade to say that the rebate is not being granted in cash. 2. The matter has been examined by the Board. It is the view that there is no discretion with the sanctioning authority to give the refund of the duty paid on goods exported through credit accounts. It is therefore clarified that the duty paid through the actual credit or deemed credit account on the goods exported must be refunded in cash. 3. Field formations may please be informed suitably. 4. Receipt of the same may be acknowledged. 5. Hindi version will follow." 13. Adverting to the contentions of the learned counsel for the petitioner whereby he has vehemently argued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estic product and higher duty on the export product which was admittedly not payable. This circular can, thus, be of no avail to the petitioner." 14. Indisputably, this is not the fact situation obtaining in these cases as there was no dispute about the nature, quality, quantity, value, duty paid character, actual export of the goods and such claims of the assessee(s) having been verified within the time. Even the declaration filed by the assessee(s) to the effect that the value i.e. assessable value declared in ARE-I on which duty had been paid is the transaction value determined under Section 4 and the Range Officer had also verified the same and it is only thereafter that the rebate of duty mentioned in ARE-I was held admissible to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circular by the Board. When a circular remains in operation, the Revenue is bound by it and cannot be allowed to plead that it is not valid nor that it is contrary to the terms of the statue. (2) Despite the decision of this Court, the Department cannot be permitted to take a stand contrary to the instructions issued by the Board. (3) A show-cause notice and demand contrary to the existing circulars of the Board are ab initio bad. (4) It is not open to the Revenue to advance an argument or file an appeal contrary to the circulars." 17. Similar reiteration of law can be found in a latter judgment of the Hon'ble Supreme Court in Union of India and others versus Arviva Industries India Limited and others (2014) 3 SCC 159. 18. In vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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