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2005 (12) TMI 24

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..... nts in this appeal of the Revenue had availed Modvat credit of Rs. 2,53,551/- on capital goods (imported by them) on the strength of Bill of Entry dated 30.11.1994. The original authority disallowed the credit to the party. The first appellate authority set aside the order of the lower authority and allowed the credit to the assessee. Pursuant to the order by the Commissioner (Appeals), the jurisd .....

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..... e was unable to avail Modvat credit on account of having moved out of the Modvat scheme and not on account of having closed down their unit. It is also submitted that the CBEC has permitted cash refund or in the case of export bate. Reference has also been made to sub-rule 3 of the erstwhile Rule 57S of the Central Excise Rules, 1944 and it has been stated that the said provision prohibited refund .....

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..... umstances of this case. In the case of Babu Textile Industries (supra), the departmental authorities had denied cash refund of an amount of duty but allowed the party to take credit of such amount in their Modvat account. The Tribunal noted that the party was not in a position to avail such credit on account of their being a SSI unit availing exemption from payment of duty on their final product. .....

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..... 5. The respondents were unable to take re-credit of the amount in question on account of their having closed down their unit and surrendered Central Excise registration. Hence, cash refund of the amount should have been allowed to them. Ld. Commissioner (Appeals) has done the right thing. His order is sustained and this appeal is dismissed. Operative part of the order was pronounced in open Cour .....

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