TMI Blog2019 (8) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... und is, therefore, not sanctioned under any express provision of law. In these circumstances, when the refund is not under any provisions of Central Excise Act, the provisions of the act relating to interest do not apply to the facts of the case. Appeal dismissed - decided against appellant. - Excise Appeal No. 12471 of 2018-SM - A/11518/2019 - Dated:- 8-8-2019 - MR. RAJU, MEMBER (TECHNICAL) Present For the Appellant: Shri S. Bissa, Adv. Present For the Respondent: Shri S.K. Shukla, Supdt. (AR) ORDER RAJU This appeal has been filed by M/s Shalu Synthetics Pvt. Ltd. against denial of interest on a refund already sanctioned to the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s obtained from High Court within 6 weeks. The said refund claim was thereafter sanctioned on 10/04/2015. However, interest of the said refund was not sanctioned by the Original Adjudicating Authority on the ground that the said claim was sanctioned in pursuance of Tribunal order without specifying if the said refund was sanctioned under Rule 5 of Central Excise Rules or under section 11B of the Central Excise Act, 1944. The Ld. Counsel relied on the decisions of the Tribunal in the case of Annapurana Plasto Pack P Ltd. 2004 (167) ELT 529 (Tri-Mumbai) wherein it has been held that liability to pay interest arise not only in case of refund but also refund of MODVAT credit. He also relied on the decision of Tribunal in the case of Birla Textu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rant of refund of Cenvat Credit balance lying unutilized at the time of closure of the unit. 4.1 I find that Hon ble High Court of Karnataka in the case of Slovak India Trading Company Pvt. Ltd. 2006 (201) ELT 559 (Karn.) has observed as following: 4. Admitted facts would reveal of a claim of cash refund and admitted facts would reveal of rejection at the hands of the Assistant Commissioner and also the appellate authority. The Tribunal has chosen to allow the claim application on the ground that refund cannot be rejected when the assessee goes out of Modvat scheme or when the Company is closed. The argument is that there is no provision for refund in terms of Rule 5 of Cenvat Credit Rules, 2002. Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rly in the light of the closure of the factory and in the light of the assessee coming out of the Modvat Scheme. In these circumstances, we answer all the three questions as framed in para 17 against the Revenue and in favour of the assessee. 4.2 It can be seen that the Hon ble HC has held that there is no bar under Rule 5. The three questions put before the Hon ble High Court was as follows: (a) Whether under the facts and circumstances of the case the Tribunal is right in ordering for refund even if there is no provision in Rule 5 of Cenvat Credit Rules 2002, to refund the unutilized Credit? (b) Whether under the facts and circumstances of the case the Tribunal is right in ordering for re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
