2011 (6) TMI 608 - AT - Central Excise

Refund - CENVAT Credit - department initiated proceedings against them on the ground that the goods were not physically received in their factory premises - Tribunal finally decided the matter in appellant s favour - duty paid through CENVAT Credit account Held that - refund should be granted by credit in CENVAT Credit Account and not by cash. order is upheld and the appeal is dismissed

Summary

Issues:
Appeal against Order-in-Appeal upholding refund sanctioning and crediting in CENVAT Credit account. Appellant's factory closed, seeks refund through cash. Revenue insists on refund through CENVAT Credit. Interpretation of relevant case laws and circulars.

Analysis:
The appellant filed an appeal against Order-in-Appeal upholding the refund sanctioning and crediting in the CENVAT Credit account. The appellant availed MODVAT credit of Rs.6,44,352. The department initiated proceedings due to goods not physically received in the factory premises. The Tribunal previously decided in favor of the appellant. The appellant sought refund through cash as their factory was closed. The Revenue argued that duty was paid through CENVAT Credit account, and interest should be granted as per Board's Circular. The Tribunal emphasized that refund for duty paid through CENVAT Credit should be given through the same account. The Tribunal referred to various case laws cited by both parties, highlighting the importance of the procedure for refund under Modvat law. The Tribunal noted that the judgments cited by the appellant were rendered before a decision by the Larger Bench. The Tribunal also referenced a High Court decision emphasizing consistency in views on similar cases. Ultimately, the Tribunal upheld the lower authorities' decision to grant the refund through CENVAT Credit account, dismissing the appeal. The Tribunal's decision was based on the established procedure and the interpretation of relevant legal provisions and case laws.