2004 (5) TMI 229 - AT - Central Excise

Summary

Issues:
1. Entitlement of refund in cash for the appellants.
2. Dispute regarding the refund amount of Rs. 44810/- and Rs. 11782/-.
3. Applicability of previous tribunal decisions on refund claims.
4. Decision on refund through CENVAT account.

Analysis:
1. The main issue in this case revolves around the entitlement of the appellants for a refund in cash. The appellants had initially claimed a refund of Rs. 8,17,894/- through MODVAT credit, which was later denied by the Commissioner (Appeals). The Tribunal had remanded the matter to the adjudicating authority, which eventually allowed a refund of Rs. 8,17,894/-. However, the Revenue contended that the appellants were not entitled to a cash refund for certain amounts and that the issue of Rs. 44810/- and Rs. 11782/- remained unresolved.

2. The appellants argued that the disputed amounts were deposited as pre-deposit during the proceedings and hence, they were entitled to a cash refund. They cited precedents such as the case of Adi Sakthi Fabricators P. Ltd., where a refund was allowed in cash when the amount was paid through MODVAT account. However, the Revenue maintained that the disputed amounts were not pre-deposited and that the appellants could only claim a credit through their MODVAT account.

3. The Tribunal analyzed previous decisions like Ashok Arc. v. Commissioner of Central Excise, Jamshedpur, and Deccan Sales Corporation, where cash refunds were allowed under specific circumstances. It was noted that in the present case, the entire amount was paid through MODVAT account, unlike the situations in the cited cases. Therefore, the Tribunal found that the precedents relied upon by the appellants were not directly applicable to the facts of the current case.

4. Ultimately, the Commissioner (Appeals) allowed a refund of Rs. 7,61,120.00 through CENVAT account and remanded the remaining amount for further scrutiny by the Adjudicating Authority. After thorough verification and pre-audit, the Adjudicating Authority allowed the refund of the entire amount. The Tribunal found no fault in the decision to refund through the CENVAT account and modified the order to grant a refund of Rs. 817694/- through the CENVAT account, thereby disposing of the appeal accordingly.