Appeal rejected, appellants advised new refund claim. Tribunal quashed demand, mistake in Cenvat credit.

The appeal was rejected, directing the appellants to pursue the issue through a new refund claim. The Tribunal had quashed the demand later, making the appellant eligible for refund. However, a mistake was noted in allowing Rs. 59,866/- as Cenvat credit when the payment was made from the PLA account, not the Cenvat account. The Deputy Commissioner and Commissioner (Appeals) orders were deemed appropriate as there was no stay against the recovery at that time.

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Issues:
Refund claim for pre-deposit adjustment and Cenvat credit eligibility.

Analysis:
In this case, the respondent filed a refund claim for Rs. 2 lakhs paid as pre-deposit, with no dispute on eligibility. The appeal challenges the order upholding the adjustment of Rs. 1,40,134/- against a confirmed demand not paid at that time. The Tribunal had quashed the demand later, making the appellant eligible for refund. However, a mistake was noted in allowing Rs. 59,866/- as Cenvat credit when the payment was made from the PLA account, not the Cenvat account. The Deputy Commissioner and Commissioner (Appeals) orders were deemed appropriate as there was no stay against the recovery at that time. The appellant should have filed a fresh refund claim after the Tribunal's order. The appeal was rejected, directing the appellants to pursue the issue through a new refund claim.

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