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TMI Blog2015 (6) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant is engaged in the manufacture of Cotton yarn and Polyester yarn falling under Chapters 52 and 55 of Central Excise Tariff Act, 1985. During the period 2000-2001 & 2001-2002, the appellant paid duty by debiting the same out of Cenvat credit account whereas they were required to discharge their duty liability only through account current as per Rule 49(1)(E) of Central Excise Rules, 1944. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected by the lower authorities on the ground that there is no provision for refund of the accumulated unutilized credit, in cash and in any case, the refund application made by him is also barred by limitation. The appellate authority observed that when the payment of Excise duty of final product in cash, they are, at the most, entitled to re-credit the amount in their Cenvat credit account but th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Cenvat credit which has already been utilized by them for payment of Central Excise duty should be refunded to them in cash. 4. I find that Cenvat credit originally used by them for payment of duty is liable to be restored in their Cenvat account, once the appellant has subsequently paid the duty in cash. The accumulated Cenvat credit cannot be allowed to a manufacturer, on the closure of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im refund of the same. Further, as the appellant has subsequently paid the duty in cash, as was required to be done by them, refund of the credit amount in cash would amount to neutralizing the effect of subsequent payment of duty in cash. Whatever they have paid in cash would get neutralize by the refund of the credit amount in cash, this leading to a situation where the appellant would not have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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