2005 (8) TMI 178 - AT - Central Excise

Summary

Issues involved: Condonation of delay in filing appeal, refund of duty amount, payment method for refund, interpretation of Section 11B of the Central Excise Act.

Condonation of delay in filing appeal: The applicant sought condonation of a 15-day delay in filing the appeal, which was allowed by the Tribunal.

Refund of duty amount: The appeal was against an order allowing cash refund to the appellants, who had challenged the order due to the closure of their factory and cessation of operations. The authorities had paid a partial amount by cheque and the rest was credited to Modvat/Cenvat account. The appellants sought the entire amount as cash refund, which was allowed by the Commissioner.

Payment method for refund: The appeal contended that the Commissioner's direction to pay the refund by cheque/cash was contrary to law. It was argued that since the duty was initially paid from the Modvat/Cenvat account, the refund should also be credited to that account. The Tribunal referred to relevant case laws and found no provision in law preventing refund in cash for duty paid from the Modvat account.

Interpretation of Section 11B of the Central Excise Act: The refund application was made under Section 11B of the Central Excise Act, which was argued to have no bar against payment of refund amounts by cheque/cash in cases where duty was paid from the Modvat/Cenvat account. The Tribunal cited previous decisions supporting the payment of refund in cash/cheque to the appellant in similar situations.

In conclusion, the Tribunal found no merit in the Revenue's appeal, as the appellant's request for cash refund was supported by legal precedents and the specific circumstances of the case. Therefore, the appeal was rejected.