9911796707
TMI Blog2007 (9) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... llows :- (a) The appellant are manufacturer of computers and they were availing Cenvat credit on the inputs used. The rate of duty on the computer was reduced from 16% to 8% in Jan., 2004 and fully exempted w.e.f. 9-7-2004 as a consequence of budgetary changes. (b) The appellant claimed cash refund of Rs. 9,27,152/- which was lying as credit in their Cenvat account as they could not use the same as their final product was fully exempted from 9-7-2004. (c) The Original Authority held that there is no provision for refund of unutilized credit consequent to the final product getting exempted. The Commissioner (Appeals) upheld the order of the Original Authority. 4.1 Ld. Advocate for the appellant submitted that during the months of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relies on the decision of the Larger Bench in the case of M/s. Gauri Plasticulture [2006 (202) E.L.T. 199 (T-LB)] wherein it has been held that when assessee was unable to utilize the credit on account of the objection raised by the Department, the cash refund should be allowed. But for the compulsion no businessmen would like to keep amounts in Cenvat credit and pay from PLA as it involves extra interest burden. 5. Ld. DR submits that there is no evidence produced regarding compulsion by the officers to make the payments in PLA; the accumulation of the credit could be attributed to changes in the rates of duties also. There has been reduction in the rate of duty on the final product from 16% to 8% in January, 2004. Further, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilize the credit on account of objection raised by the Department or actions taken by them by way of initiation of proceedings or paid duty out of Modvat account at the Department's insistence, and for that reason, he had to pay duty in cash or out of the PLA, they would be entitled to refund of that credit in cash on the dispute being ultimately settled in their favour. In the decisions holding that such refund in cash is not possible it has been observed that there is no provision allowing refund of such credit in cash. However, we are not in agreement with the above proposition for the simple reason that there is also express no bar in the Modvat Rules to that extent. We have to keep in mind that it is not the refund of unutilized cred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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