9911796707
TMI Blog2025 (2) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... irst Schedule to the Central Excise Tariff Act, 1985. The appellants avail CENVAT Credit of central excise duty paid on the inputs and Service Tax on the input services. During the disputed period, the appellants' production activities were stopped and due to suspension of such production activity, they were not in a position to utilise the accumulated CENVAT Credit balance available in their books of account. Therefore, they had filed a refund application under Rule 5 of the CENVAT Credit Rules, 2004, claiming refund of accumulated CENVAT Credit of Rs.1,96,64,180/-. The refund application filed by the appellants was sought to be denied by the Department on the ground that Rule 5 ibid deals with the situation of grant of refund in case of n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 ibid, permits a manufacturer to take cenvat credit of various duties and taxes paid on the inputs/input services for use in, or in relation to the manufacture of the excisable final product(s). The credit so availed, is permitted for utilisation in the manner provided under sub-rule (4) of Rule 3 ibid. It has been provided that cenvat credit may be utilised for payment of any duty of excise on any final product; or an amount equal to cenvat credit taken on inputs, if such inputs are removed as such or after being partially processed; or an amount equal to the cenvat credit taken on capital goods, if such capital goods are removed as such; or an amount under sub-rule (2) of rule 16 of Central Excise Rules, 2002; or service tax on any outpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained in Rule 5 ibid. The modality for grant of refund of the excise duty is contained in Section 11B of the Central Excise Act, 1944. The relevant date of computation of the expiry period has been explained in Explanation-(B) appended to Section 11B ibid. Various circumstances for consideration of relevant date in the course of ongoing activities undertaken by a business establishment, have been elucidated therein. Since, closure of a factory is not a routine phenomenon, but happens in rarest occasion, the relevant date in context with the limitation for filing of refund application under such circumstances, cannot be reckoned by reading the Explanation clause provided in Section 11B ibid. In the case in hand, though the factory of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is required to be allowed with consequential benefit to the appellant." 4. Further, we also find that by placing the reliance on the order passed in the case of M/s ATV Projects India Ltd. (supra), co-ordinate Bench of the Tribunal in the case of M/s Kinol Lubes Pvt. Ltd. Vs. Commissioner of Central GST & Central Excise, West Delhi - 2024 (10) TMI 1254 - CESTAT NEW DELHI, has allowed the refund benefit in respect of unutilized CENVAT Credit available in the books of account on closure of the manufacturing unit. 5. In view of the above, we do not find any merits in the impugned order, insofar as it has upheld confirmation of the adjudged demands on the appellant. Therefore, the impugned order is set aside and the appeal is allowed in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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