9911796707
TMI Blog2025 (2) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... ONER OF CENTRAL EXCISE & SERVICE TAX, RAIGAD [2023 (9) TMI 802 - CESTAT MUMBAI] where it was held that 'In the case in hand, though the factory of the appellant was nonoperational for quite a long time, but it had continued to file the statutory returns before the authorities and finally surrendered the registration certificate. Immediately thereafter, since the accumulated cenvat balance lying in the books was claimed as refund, in my considered view, it cannot be said that such claim is barred by limitation of time. In other words, availment of cenvat credit is an indefeasible right of an assessee and such right conferred under the statue cannot be taken away on the ground of limitation.' By placing the reliance on the order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During the disputed period, the appellants' production activities were stopped and due to suspension of such production activity, they were not in a position to utilise the accumulated CENVAT Credit balance available in their books of account. Therefore, they had filed a refund application under Rule 5 of the CENVAT Credit Rules, 2004, claiming refund of accumulated CENVAT Credit of Rs.1,96,64,180/-. The refund application filed by the appellants was sought to be denied by the Department on the ground that Rule 5 ibid deals with the situation of grant of refund in case of non-utilization of CENVAT Credit on the inputs, which were used for manufacture of the final products exported by the assessee. On the basis of such understanding, show-ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cisable final product(s). The credit so availed, is permitted for utilisation in the manner provided under sub-rule (4) of Rule 3 ibid. It has been provided that cenvat credit may be utilised for payment of any duty of excise on any final product; or an amount equal to cenvat credit taken on inputs, if such inputs are removed as such or after being partially processed; or an amount equal to the cenvat credit taken on capital goods, if such capital goods are removed as such; or an amount under sub-rule (2) of rule 16 of Central Excise Rules, 2002; or service tax on any output service. 29.2 As a manufacturer of excisable goods, the appellant herein got itself registered with the jurisdictional Central Excise authorities. It has also availed c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the expiry period has been explained in Explanation-(B) appended to Section 11B ibid. Various circumstances for consideration of relevant date in the course of ongoing activities undertaken by a business establishment, have been elucidated therein. Since, closure of a factory is not a routine phenomenon, but happens in rarest occasion, the relevant date in context with the limitation for filing of refund application under such circumstances, cannot be reckoned by reading the Explanation clause provided in Section 11B ibid. In the case in hand, though the factory of the appellant was nonoperational for quite a long time, but it had continued to file the statutory returns before the authorities and finally surrendered the registration cert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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