2009 (1) TMI 623 - AT - Central Excise

Summary

Issues involved: Refund of unutilized Cenvat credit upon closure of factory.

Summary:
The Appellant, manufacturers of Iron and Steel products, sought refund of unutilized Cenvat credit amounting to Rs. 54,265 upon surrendering their Central Excise Registration Certificate after closing down their unit. The Assistant Commissioner refused the refund, which was upheld by the CCE (Appeals). The appeal was filed against this decision.

The Appellant argued for the refund of unutilized credit even in the absence of a specific provision in the Cenvat Credit Rules. On the other hand, the Departmental Representative contended that there is no provision in the Central Excise Rules or Cenvat Credit Rules for such a refund when a factory is closed and the registration surrendered.

The Tribunal, after considering the submissions, noted the absence of any provision for cash refund of unutilized Cenvat credit upon closure of a unit in both the Cenvat Credit Rules and Central Excise Rules. Consequently, the Tribunal found no fault in the impugned order and dismissed the appeal.