2019 (10) TMI 322 - HC - Central Excise

Refund of excise duty paid - central excise duty was paid out of Cenvat input credit enjoyed by them - HELD THAT - The issues should be decided threadbare by the revisional authority upon consideration of the entire evidence to be adduced by the parties. We give an opportunity to the appellant to adduce further evidence by way of an affidavit before the revisional authority to be filed within four weeks from date. We also grant a similar opportunity to the respondents. Their affidavit is to be filed within four weeks thereafter. The revisional authority will examine the matter thoroughly upon notice to and upon hearing to the parties by a reasoned order within six months from date - Impugned order set aside.

Summary

Issues: Claim for refund of excise duty paid on exported goods, fulfillment of conditions for exemption, availability of Cenvat input credit, need for further evidence in the case.

Analysis:
The appellant, a manufacturer of Bulk Drugs, claimed refund of excise duty paid on goods exported under a specific notification. The appellant argued that the condition for exemption was not fulfilled, leading to the payment of central excise duty. The duty was paid using Cenvat input credit. The appellant contended that upon export, they were entitled to the refund of the excise duty paid. However, both the respondents and the revisional authority directed the appellant to refund the amount, stating that the duty was erroneously paid and the Cenvat input credit was not to be utilized for this purpose. The appellant argued that the non-fulfillment of the condition did not make the availment of Cenvat input credit erroneous. The court noted that the issues were not properly examined by the revisional authority and allowed the appellant to produce further evidence through affidavits within a specified timeline.

The court granted the opportunity for both parties to submit additional evidence and directed the revisional authority to thoroughly examine the matter and issue a reasoned order within six months. The previous judgment was set aside, and the appellant was prohibited from transferring or reducing the value of fixed assets below the refund amount until the revisional authority's determination. The appeal was disposed of, and the parties were granted certified copies of the order upon completion of formalities.