2018 (6) TMI 1422 - HC - Central Excise

Refund in cash - payment of excise duty under protest - respondent no longer undertakes any activity requiring payment of excise duty - Held that - In view of the fact that respondent no longer undertakes any activity requiring payment of excise duty therefore the Tribunal took a view that no useful purpose would be served by allowing recrediting into the Modvat credit account - appeal dismissed.

Summary

Issues:
1. Appeal under Section 35G of the Central Excise Act, 1944 against a Customs, Excise & Service Tax Appellate Tribunal order directing refund of Central Excise duty.
2. Activities undertaken by the respondent and the dispute regarding refund claim of a specific amount.
3. Tribunal's decision on the refund claim and the Court's opinion on the matter.

Analysis:
1. The appeal before the High Court was made under Section 35G of the Central Excise Act, 1944, challenging the order of the Customs, Excise & Service Tax Appellate Tribunal directing the refund of Central Excise duty amounting to &8377; 63,30,263/- to the respondent. The Tribunal had ordered the refund in cash to the respondent, who is engaged in the production and distribution of electricity, along with the erection of towers for transmission lines through various activities on iron and steel products.

2. The respondent had paid excise duty under protest for activities like cutting, drilling, punching, bending, welding, assembling, and painting on duty paid iron and steel products. The Tribunal had previously held that these activities did not amount to manufacturing, leading to a refund of a portion of the paid amount. The dispute in question pertained to the refund claim of &8377; 63,30,263/-, which the Tribunal directed to be paid in cash as the respondent no longer engaged in activities requiring excise duty payment.

3. The High Court, after considering the facts and legal aspects, concluded that the matter was purely a question of fact without any substantial question of law. The Court found no merit or substance in the appeal and dismissed it accordingly. The decision was based on the Tribunal's ruling and the lack of any significant legal issues raised in the appeal memorandum.