2016 (10) TMI 609 - AT - Central Excise

Denial of refund of AED - correlation of the unutilised credit to the quantum of export of the goods - whether the Revenue s contention of denial of refund is justified on the ground that credit availed will remain unutilised even if goods are not exported? - Held that - identical issue in respect of the very same assessee was decided where it was held that refund has to be granted of the unutilized credit. Appeal dismissed - impugned order upheld - decided against Revenue.

Summary

Issues involved: Refund of AED filed by respondent for the period 2002-03.

Analysis:
The case revolves around the denial of a refund of AED filed by the respondent for a specific period. The adjudicating authority refused the refund, stating that the credit availed of AED would have remained unutilized even without the export of goods. The Revenue argued that the unutilized credit for which the refund was sought should be linked to the quantity of goods exported. However, the Tribunal rejected this argument, citing a previous case involving the same assessee where a similar issue was resolved in favor of granting the refund of unutilized credit. The Tribunal's earlier decision was challenged by the Revenue in the High Court, but the appeal was dismissed, confirming the Tribunal's decision.

Therefore, based on the precedent set in the respondent's previous case, the Tribunal concluded that the impugned order denying the refund was correct and did not warrant any intervention. Consequently, the Tribunal upheld the impugned order and dismissed the appeal.