TMI Blog2004 (7) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... in short RSWM); that the Revenue contended that since the Appellants and RSWM are related persons, the price at which RSWM sell the goods should form the basis of assessment of Central Excise duty; that on appeal filed by them the Appellate Tribunal vide Final Order No. 134-143/2001-A dated 4-4-2001 [2001 (131) E.L.T. 594 (T)] set aside the order and held that the Appellants and RSWM were not related persons, and therefore, they are liable to pay excise duty based on principles laid down by the Supreme Court in Ujagar Prints case; that during the interim period in view of insistence and direction given by the department they had started paying duty under protest on the basis of selling price of RSWM; that subsequent to the Final Order passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty has been deposited in cash or through utilisation of credit; that Section 11B does not envisage that the refund of duty paid by utilisation of credit has to be granted by allowing the credit in the credit account; that it has been held by the Tribunal in the case of National Organic Chemicals Industries Limited v. CCE, Bombay-III, 1994 (70) E.L.T. 722 (T) that "set off can be claimed by way of cash refund also"; that the appeal filed by the Revenue against the said decision has been dismissed by the Supreme Court as reported in 1996 (84) E.L.T. A106. He also mentioned that the factory of the Appellants is lying closed and at present no manufacturing operations are being carried out in their premises and thus the Appellants are unable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable to them under the Act. 3. Countering the arguments Mrs. Charul Baranwal, learned SDR, submitted that there are no provisions in Modvat Rules for the refund of Modvat Credit in cash; that the Modvat Credit under the Rules is to be utilised only for payment of any duty of excise on any final product manufactured by the manufacturer or for payment of duty on inputs or capital goods themselves, if such inputs are removed as such or after being partially processed or such capital goods are removed as such; that the refund of Modvat credit in cash is only permissible when the inputs are used in the final product which are exported and it is not possible for the manufacturer to utilise the said credit towards payment of duty on the final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat refund of duty amount paid by debit to RG 23 account is to be credited to RG account only and is not to be paid in cash or by cheque. 4. We have considered the submissions of both the sides. Central Excise Rules, 1944 earlier and now CENVAT Credit Rules provided for the credit of the duty paid on the inputs used in or in relation to the manufacture of the final product and duty paid on the capital goods. These rules provide that the Modvat Credit of the duty so availed is to be used towards payment of duty on any of the finished goods manufactured by the manufacturer or on the inputs/capital goods, if removed as such. The learned SDR is justified in making the submissions that Modvat Credit Rules do not contain any provision for the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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