Unutilized Cenvat Credit Refund Denied: Rule 5 Amendment Restricts Cash Refund Claim Under Statutory Interpretation

CESTAT dismissed the appeal regarding entitlement to cash refund of unutilized Cenvat credit. The tribunal held that the appellant could not demonstrate a valid refund claim under the amended Rule 5 of CENVAT Credit Rules, 2004, which narrowed the scope of accumulated credit refunds. Applying the Mischief Rule of statutory interpretation, the tribunal found no legal provision allowing cash refund if the appellant failed to carry forward credit to the GST regime. The decision aligned with precedential rulings, particularly referencing the Bombay HC judgment in Gauri Plasticulture, ultimately rejecting the appellant's claim and dismissing the appeal without merit. .....

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