TMI Blog2017 (3) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... ly recognized the event of export of goods for refund of Modvat credit, as has been rightly pleaded by revenue and present reference is neither the case of "otherwise due" of the refund nor the case of exported goods. Similarly, absence of express grant in statute does not imply ipso facto entitlement to refund - From the aforesaid observation of the Larger Bench, it is very much clear that the refund cannot be allowed in cash - impugned order upheld - refund rightly rejected - appeal dismissed - decided against appellant. - Central Excise Appeal No. 13844, 13845 of 2013-SM - A/10653-10654/2017 - Dated:- 17-3-2017 - Dr. D.M. Misra, Member (Judicial) Shri S.J. Vyas, Advocate for the appellants Shri A. Mishra, A.R. for the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losed has been settled by the decisions of this Tribunal in the case of Kochar Sung-up Acrylic Ltd 2010 (259) ELT 713 (Tri-Del), Ramji Packaging Pvt. Ltd 2013 (8) TMI 771-CESTAT Ahmedabad, Lohia Polyester Pvt. Ltd 2014 (313) ELT 435 (Tri-Ahmd), Bangalore Cables Pvt. Ltd 2016 (8) TMI 293-CESTAT Bangalore . Further, rebutting the Revenue s argument that the issue is covered by the decision of the Larger Bench of the Tribunal in the case of Steel Strips Vs CCE Ludhiana 2011 (269) ELT 257 (Tri-LB) , the learned Advocate submits that once the credit is utilized for payment of duty, the nature of credit is changed and it becomes duty and it is the duty which has been sought as refund. Further, it is contended that the nature of duty does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is his further contention that the Larger Bench though over-ruled the judgment of the Tribunal in Purvi Fabrics Texturise (P) Ltd Vs CCE Jaipur-II 2004 (172) ELT 321 (Tri-Del), but on appeal against the order, the Hon'ble Supreme Court upheld the view of the Tribunal reported as Purvi Fabrics Texturise P Ltd Vs CCE Jaipur-II 2015 (319) ELT 551 (SC); observing that the claim of refund of the amount in cash which has been rejected by the Tribunal also does not call for any interference. Further, the learned Authorized Representative referring to the subsequent judgment of Larger Bench in the case of Steel Strips case(supra) submitted that the Larger Bench has answered specifically the reference observing that in absence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Larger Bench has taken note of its earlier decision in Gauri Plasticulture (P) Ltd. case (supra) on the subject, and after analyzing the principle of law settled on the subject, observed as follows:- 5.16 Modvat law has codified procedure for adjustment of duty liability against Modvat Account. That is required to be carried out In accordance with law and unadjusted amount is not expressly permitted to be refunded. In absence of express provision to grant refund, that is difficult to entertain except in the case of export. There cannot be presumption that in the absence of debarment to make refund in other cases that is permissible. Refund results in outflow from treasury, which needs sanction of law and an order of refund for su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d duty paid on the capital goods. These rules provide that the Modvat Credit of the duty so availed is to be used towards payment of duty on any of the finished goods manufactured by the manufacturer or on the inputs/capital goods, if removed as such. The learned SDR is justified in making the submissions that Modvat Credit Rules do not contain any provision for the refund of the Modvat Credit in cash or by cheque except in cases where the inputs are used in the manufacture of goods which are exported out of India and manufacturer is not in a position to utilise the credit. The refund in cash is granted as an incentive measure to the exporter. We also find force in the submissions of the learned SDR that Section 11B of the Central Excise Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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