2017 (1) TMI 212

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....d central excise duty till 09.07.2004, after which date, the excise duty on the manufacturing activity was completely withdrawn. On 21.07.2004, the respondent surrendered the Central Excise Registration. 2.1 During the period of their operation, the respondent had opted for the Compounded Levy Scheme under Rule 96ZH of the C.E.R., 1944 (for brevity erstwhile rules ). Vide Notification No. 15/98-CE(NT) dt. 2.6.1998, Rule 96ZH of the erstwhile Rules was amended to the effect that the Modvat Credit under Rule 57A, 57B and 57Q of the erstwhile rules was made unavailable to a manufacturer operating under the Compounded Levy Scheme (proviso to Rule 96ZH(1) of the erstwhile rule). The respondent had imported embroidery machines before 2.6.1998 an....

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....odvat Credit taken prior to the amendment to 96ZL, but utilized at a later date. To this issue the Hon'ble High Court has held that it was correctly availed by the respondent. Consequent to the High Court's order, the respondent sought refund of Rs. 3,01,820/- deposited against the stay order no. 1047/05/SM/BR and final order no. 1730-1730/06 dt. 08.12.2006, and duty of Rs. 28,16,625/- paid on the embroidery manufactured during the period of March 1998 to August 1998 and April 1999 to March 2002. 3. The refund claim of Rs. 28,16,265/- was examined by the Assistant Commissioner and the same was rejected. The respondent went in appeal and the Commissioner (Appeals) has allowed the refund claim on the following grounds: (i) The period of li....