2005 (6) TMI 370 - AT - Central Excise

Summary

Issues:
Import of inputs under Duty Exemption Entitlement Certificate Scheme, Modvat credit utilization, export obligation under Notification No. 203/92, procurement of similar inputs from the local market, clearance for home consumption, availment of input duty credit, settlement under Kar Vivad Samadhan Scheme, claim for refund of interest.

Analysis:
The appellants imported inputs under the Duty Exemption Entitlement Certificate Scheme and utilized Modvat credit of CVD paid on them. They used these inputs to manufacture leather cloth for export, fulfilling their export obligation under Notification No. 203/92. Simultaneously, they procured similar inputs locally. Some of their production was cleared for home consumption, and they utilized the credit for duty payment, which was restricted under the Notification. Realizing the error, they reversed the credit and paid interest as part of a settlement with the department under the Kar Vivad Samadhan Scheme, 1998. Subsequently, they sought a refund of the interest, which was denied by the lower authorities, leading to the current appeal.

Upon reviewing the case and the arguments presented by the consultants for both parties, the judge noted that the claim for refund was made after the dispute had been settled under a statutory scheme. Once a dispute is resolved through settlement, neither party can make further claims. In such a scenario, the assessee cannot seek refunds of duty or interest, and the department cannot recover duty, interest, or impose penalties. Consequently, the judge found no grounds to interfere with the lower authorities' decision and dismissed the appeal.

In conclusion, the judgment emphasizes that post-settlement, no party can claim additional benefits or refunds related to the settled dispute. The decision highlights the finality and conclusiveness of settlements under statutory schemes, preventing any further claims or actions by either party.