2005 (8) TMI 423 - AT - Central Excise

Summary

Issues:
1. Refund of duty paid twice - Cenvat credit and PLA.

Analysis:
The case involved a dispute regarding the refund of duty paid twice by the appellant, once through Cenvat credit and the second time through the Personal Ledger Account (PLA). The Commissioner (Appeals) noted that the respondent had paid duty twice, first through Cenvat credit and then through PLA due to insufficient balance in the Cenvat account. The Commissioner held that the duty paid through PLA was correct, and the cash refund granted by the adjudicating authority was incorrect. The Commissioner directed that the refund should be given to the respondent in the Cenvat account, and any cash refund should be recovered.

The appellant contended in the appeal memo that they were entitled to a cash refund since duty was paid twice - once through Cenvat credit and once through PLA. However, the Tribunal analyzed the facts and found that the duty was paid using the PLA account due to insufficient balance in the Cenvat account at the time of duty discharge. Therefore, the Tribunal upheld the impugned order allowing the appellants to take credit in the Cenvat account. Consequently, the appeal was dismissed.

The judgment was pronounced on 5-8-2005 by the Appellate Tribunal CESTAT, New Delhi. Shri S.S. Kang, J., presided over the case. The appellant was represented by Shri Y. Kumar, Advocate, while Shri S. Bhatnagar, JDR, appeared for the respondent. The Tribunal carefully considered the submissions from both sides before reaching the decision.