TMI Blog2019 (3) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided/received. The closure of the factory should not be allowed to snatch away that amount from the manufacturer. The availment of CENVAT Credit and its utilization is akin to a fundamental right in the area of indirect taxation. It has been time and again reiterated that CENVAT Credit is as good as a cash balance, to be utilized for the discharge of duty liability in lieu of actual cash. If a factory of a manufacturer has closed down for no fault of theirs, the unutilized Credit, which rightfully belongs to the manufacturer, cannot be denied to them when claimed by way of refund. The issue in dispute is no longer res integra and it has now been conclusively settled by both the Hon’ble High Court and the Hon’ble Apex Court that purs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter came up for hearing, on behalf of the appellant, Ld. Consultant Shri. D. Arvind submits that the matter is no longer res integra and that the Hon ble High Court of Karnataka in the case of Union of India Vs. M/s. Slovak India Trading Co. Ltd. 2006-TIOL-469-HC-KAR-CX had upheld the Tribunal order that there is no express prohibition in terms of Rule 5 of the CENVAT Credit Rules. Therefore, refund claim for unutilized CENVAT/MODVAT Credit is eligible and refund is to be made in action when the assessee goes out of MODVAT scheme or when the factory is closed. In appeal, the Hon ble Supreme Court, vide an order dated 25.01.2007 as reported in 2008 (223) E.L.T. A170 (S.C.), affirmed the above decision of the Hon ble High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble Apex Court has laid down very valuable guiding principles on the scope of courts to read something into the statutory provisions. Nonetheless, these principles have been propounded in the area of jurisprudence, that is, concerning interpretation of statutes. 7.1 However, we find that the ground for rejection of refund of unutilized Credit claimed by the appellant is that there is no express provision to grant refund of such Credit lying in the books of accounts. In our view, the accumulation of CENVAT Credit in the CENVAT account is done over a period of time by a manufacturer by taking Credit of the duty suffered on inputs, capital goods and eligible input services. Thus, this Credit balance is built up and assiduously gathe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e their order has also dismissed the SLP against the Hon ble Karnataka High Court s decision. Only after taking note of the fact that the Ld. ASG appearing for the Union of India fairly conceded that a number of decisions of the Tribunal on the very same issue have not been appealed against, has the Hon ble Apex Court dismissed the SLP. Thus, this ratio has now become the law of the land. 8.2 Ld. Consultant for the appellant has also pointed out that the decision of the Hon ble High Court in M/s. Slovak India Trading Co. Ltd. (supra) has also been followed by the Hon ble High Court of Rajasthan in M/s. Welcure Drugs Pharmaceuticals Ltd. (supra). 9. In the circumstances, we find that the issue in dispute is no longer res integra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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