2009 (2) TMI 685 - AT - Central Excise

Summary

Issues involved: Appeal against rejection of refund claim u/s Notification No. 50/2003, validity of Cenvat credit utilization u/s Rule 6(1) of Cenvat Credit Rules, relevance of Rule 9(2) in exemption cases.

Refund Claim u/s Notification No. 50/2003:
The appellant, a medicine manufacturer, claimed exemption u/s Notification No. 50/2003 post-expansion. Dispute arose on substantiated expansion for exemption eligibility. The appellant reversed credit of Rs. 4,78,260/- on inputs, later seeking refund. Original authority rejected refund, upheld by Commissioner (Appeals).

Validity of Cenvat Credit Utilization:
Appellant argued valid credit utilization u/s Rule 6(1) as goods were dutiable when credit taken and utilized. Larger Bench precedent (HMT & Others case) cited, stating no need to reverse credit on final product exemption.

Relevance of Rule 9(2) in Exemption Cases:
DR contended exemption not applicable as goods were exempt post-expansion, differing from cited precedents. Appellant voluntarily reversed credit, no provision for cash refund except for exported final product credit. Unjust enrichment provisions considered for refund.

Judgment:
After considering submissions, Tribunal found appellant's credit validly taken and utilized on dutiable final products, aligning with legal provisions and precedents. Citing relevant case law, Tribunal ruled in favor of appellant, allowing the appeal and granting relief accordingly.