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TMI Blog2017 (3) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority by re-credit in CENVAT Credit Account and not by cash. Aggrieved by the said order, the Appellants filed an appeal before the learned Commissioner (Appeals), who in turn, held that refund cannot be allowed in cash even in a situation where at the time of grant of refund the unit is either totally closed or it is not in a position to utilize the CENVAT credit for any reason. Against the said order, the appellant filed these appeals before this forum. 3. The learned Advocate Shri S.J. Vyas for the Appellant submitted that even though the Appellant was allowed refund, but direction to pay it by re-crediting their CENVAT account, is erroneous. It is his contention that their factory has been closed since 29.3.2013 and they had also s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined unutilized since the Department had forced the Assessee to pay the duty through PLA. In such scenario, the Larger Bench observed that the credit was never utilized for payment of duty and such amount paid as duty was not involved in the claim of refund. He has vehemently argued that the facts in the present case, therefore, are not comparable, accordingly, eligible to refund under Section 11B of Central Excise Act, 1944. Similarly, the learned Advocate sought to distinguish the judgment of this Tribunal in the case of Saroj Metal Works Pvt. Ltd VS CCE Bhopal - 2005 (189) ELT 435 (Tri-Del), Birla Corporation Ltd Vs CCE Pune-I 2011 (274) ELT 529 (Tri-Mum). 4. Per contra, the learned Authorized Representative for the Revenue Shri A. Mish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contrary to the judgment of Larger Bench in Steel Strips case (supra) and also the judgment of the Hon'ble Supreme Court upholding the Purvi Fabrics & Texturise P Ltd (supra). Therefore, the same cannot be considered as binding precedent. 5. Heard both sides and perused the records. The short question involved for determination is: whether the Appellants are entitled for refund amount in cash instead of credit in their CENVAT account, as directed by the learned Commissioner (Appeals). I find that the issue has been considered at length by the Larger Bench in Steel Strips case (supra). It is the contention of the learned Advocate that the circumstances involved in Steel Strips case (supra) are not comparable to the facts of the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rue under law, claim thereof is inconceivable. Therefore, present reference is to be answered negatively and in favour of Revenue since refund of unutilized credit is only permissible in case of export of goods and for no other reason whatsoever that may be. As has been stated earlier that equity, justice and good conscience are the guiding factors for Civil Courts, no fiscal Courts are governed by these concepts, the present reference is bound to be answered in favour of Revenue and it is answered accordingly." 7. From the aforesaid observation of the Larger Bench, it is very much clear that the refund cannot be allowed in cash. Also, I find that a similar view has been expressed by the Division of the Tribunal in the case of Purvi Fabric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n except in the case of export of goods, in no other case refund of credit is permissible under the rules in cash or by cheque. The learned SDR has also distinguished the decisions relied upon by the learned Advocate. This Tribunal has considered the issue regarding refund of Modvat Credit in cash in the case of Rajashree Cements where the Tribunal has held as under :- "...........this is a Credit Account in which duty paid by the supplier of goods is credited so that the cascading effect of duty is wiped out. The Central Excise Rules permit the refund in cash of such duty only when the final goods are exported out of the country and the manufacturer is not in a position to utilise the credit towards payment of duty ..................... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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