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TMI Blog2017 (3) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... bjective. Hence credit, or re-credit, in the CENVAT account benefits the buyer and others in the chain and is, correspondingly, of no benefit to the seller. Accordingly, to even conceive that restoration of CENVAT credit is to be prevented as a matter of course is not in accordance with the fundamentals that motivated the incorporation of ‘value added’ in indirect taxation. It is only tax administrators who continue to hold fast to the hurdle of ‘unjust enrichment’ to deny rightful claims for restoration of CENVAT credit. Such obduracy is ill-founded. Appeal allowed - decided in favor of appellant. - E/478/2012 - A/85399/17/SMB - Dated:- 14-9-2016 - Shri C J Mathew, Member (Technical) Shri Sunil Nawandar, Advocate for the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claim had been sanctioned and adjusted towards a payment default of October 2010 after rendering a finding that the bar of unjust enrichment is not attracted to the claim. 4. Appellant was alleged to have availed CENVAT credit of ₹ 66,00,257/- and, upon issue of notice, this amount was reversed. Accordingly, the effect of such action was to reduce the fund of credit available for utilisation in discharge of duty on clearance of goods manufactured by appellant. Upon the Tribunal holding that ₹ 38,73,755/- was wrongly disallowed, appellant sought refund. It would appear that this claim for refund was preferred in the form prescribed for refunds under section 11B of Central Excise Act, 1944. Notwithstanding the form in wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, he has enabled a credit to the Fund that serves neither man nor beast. It is doubtful if it was his intention that this amount, otherwise ruled as entitled to the appellant, be recovered in cash for deposit in the Fund or to be transferred from the Consolidated Fund of India to the Fund. The futility of the order that has been issued without proper application of mind becomes patent. 7. The confusion appears to have emanated from a commonly held belief that payment by credit is no different from cash payment. While that is true insofar as discharge of duty liability is concerned such portrayal does not extend across the entire scheme of tax administration and the apparent inability to comprehend that distinction has manifested itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty or tax on goods or services procured for manufacture of goods or for rendering of services. Its avowed purpose of avoiding the cascading effects of taxation can be met only when it is passed on by utilising of such credit. Commercial exigency dictates that a lower price will stimulate a beneficial outcome for the seller and access to this credit enables that commercial objective. Hence credit, or re-credit, in the CENVAT account benefits the buyer and others in the chain and is, correspondingly, of no benefit to the seller. Accordingly, to even conceive that restoration of CENVAT credit is to be prevented as a matter of course is not in accordance with the fundamentals that motivated the incorporation of value added in indirect taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 45 (Mad)] has held that 13. We do not subscribe to the view expressed by the Revenue. Admittedly, the assessee originally availed the Cenvat credit on Service Tax for discharging its liability. However, for sound reasons, it reversed the credit. Strictly speaking, in this process, there is only an account entry reversal and factually there is no outflow of funds from the assessee to result in filing application under Section 11B of the Central Excise Act, 1944 claiming refund of duty. The contention of the Revenue that even in reversal of the entry there is bound to be an unjust enrichment has no substance or based on any legal principle, since, what is availed off by the assessee is only a credit on the duty paid on the services ren ..... X X X X Extracts X X X X X X X X Extracts X X X X
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