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TMI Blog1997 (2) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... f notice of hearing but has sent a request for disposal of the appeal on merits. I have heard Shri V.R. Sethi, JDR and perused the papers. 2. Appellant engaged in the manufacture of excisable goods had availed Modvat credit of the duty paid on inputs and utilised the same for paying duty on the finished products. Appeal relates to such clearances which took place at a time when the revised price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uiring the appellant to show cause why refund claim should not be rejected. Appellant resisted the notice. The Assistant Collector, however, rejected the claim for refund of Rs. 35,961.63 on the ground that duty had not been paid in cash but had been adjusted against Modvat credit and such duty cannot be refunded. He rejected the claim of Rs. 8,982.95 on the ground of unjust enrichment even though ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter case there is payment in cash. Book adjustment in the former case is of the credit of duty paid on inputs. Duty paid on inputs cannot ordinarily be refunded. The only facility available under 57A of the Rules in this behalf is utilisation of credit of duty for discharging liability of payment of duty on the finished product, apart from the facility available in 57F of the Rules which, howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including the profit in the wholesale price and the amount of refund in the case of payment through PLA has to be recalculated. It appears to me that in the case of Modvat credit also the amount of duty on the final product actually payable has to be recalculated and excess payment made by utilising Modvat credit will have to be reversed in the RG 23A register. With these directions the appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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