2015 (6) TMI 1220

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..... he duty in cash. The accumulated Cenvat credit cannot be allowed to a manufacturer, on the closure of their factory inasmuch as there is no provision for refund of such unutilized accumulated credit, in the Cenvat credit Rules. Accumulative reading of the said rules leads to conclude that the credit so availed by an assessee can be used for payment of duty or the final product. It is not a case wh .....

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..... current as per Rule 49(1)(E) of Central Excise Rules, 1944. It is seen that proceedings were initiated against the appellant by way of issuance of show-cause notice for confirmation of demand of duty in cash. The said show-cause notice was adjudicated vide Order-in-Original dated 31-3-2003 confirming the demand and imposing penalty. The order also confirmed the interest amount. 2. The appellan .....

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..... d to re-credit the amount in their Cenvat credit account but the same cannot be allowed in cash. The appellant s case is that inasmuch as their unit is lying closed, they would be unable to utilize the credit and the same should be given in cash. The said orders passed by the authorities below stand impugned before the Tribunal. 3. After hearing both the sides duly represented by learned advoca .....

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..... t cannot be allowed to a manufacturer, on the closure of their factory inasmuch as there is no provision for refund of such unutilized accumulated credit, in the Cenvat credit Rules. Accumulative reading of the said rules leads to conclude that the credit so availed by an assessee can be used for payment of duty or the final product. It is not a case where such credit was available to the appellan .....

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..... ing to a situation where the appellant would not have paid any excise duty in cash. The refund of credit in cash would amount to defeating the legislative provisions of paying duty on the final product in cash. 6. As such, seeing from any angle, the credit amount which stands accumulated and unutilized cannot be refunded in cash to the appellant. Accordingly, I find no infirmity in the impugned .....

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