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2023 (10) TMI 672 - AT - Central ExciseRefund of accumulated credit in CENVAT credit - rejection on the grounds that claim filed beyond the period of limitation of one year from the date of exports - no justification of inability to utilize the said credit - HELD THAT - It is settled law that relevant date for the purpose of section 11B of Central Excise Act, 1944 would be the date of export/date on which the application could have been preferred/ date on which the last of the repatriation for the export of that quarter was received. This aspect has not been examined by the lower authorities. The claim has also been held liable to be rejected for not having justified the inability to utilize the CENVAT credit towards domestic clearance. We do not find any such condition in the said notification or, for that matter, in rule 5 of CENVAT Credit Rules, 2004. The eligibility for availment of the scheme, though elaborating upon the non-utilization of accumulated CENVAT credit, has not designed a mechanism for such segregation save proportionality with exports which is not in dispute. Such entitlement for claim of refund has not been examined and, having been disposed off at the threshold, lacks scrutiny on merits. It is necessary for the application for refund to be restored to the original authority for determination of the amount of refund eligible in accordance with the said notification - matter remanded to the original authority for fresh decision. Appeal allowed by way of remand.
Issues involved:
Claim for refund of accumulated credit in CENVAT credit account for exports beyond the limitation period and justification for inability to utilize the credit. Issue 1: Claim for refund beyond the limitation period - The appellant, a manufacturer of excisable goods, sought refund of accumulated CENVAT credit for exports from April 2011 to June 2012. - Lower authorities rejected the claim citing filing beyond the one-year limitation period and lack of justification for inability to utilize the credit. - Appellant argued that the claim adhered to the conditions in notification no. 5/2006-CE (NT) and that restrictions not specified therein should not be imposed. - Tribunal noted that Rule 5 of CENVAT Credit Rules, 2004 does not prescribe a time limit, and any limitation should be in harmony with the procedure outlined in the notification. - The relevant date for refund under the Central Excise Act, 1944 should be read in line with the monetization scheme, considering the consolidation of claims per quarter. - Decision of the Hon'ble High Court of Madras in a similar case was discussed, emphasizing the date of export as crucial for refund eligibility. Issue 2: Justification for inability to utilize the credit - The claim was also rejected for not justifying the inability to utilize the CENVAT credit for domestic clearance. - Tribunal observed that there was no such condition specified in the notification or the CENVAT Credit Rules, 2004. - While the scheme requires the reversal of credit proposed for monetization, the authority cannot impose additional conditions beyond what is prescribed. - The entitlement for the refund claim was not thoroughly examined, and the matter was remanded to the original authority for a fresh decision to determine the eligible refund amount. Separate Judgement: - There is no separate judgment delivered by the judges in this case.
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