Cash refund of unutilized Cenvat credit permitted after factory closure and surrender of excise registration.

Unutilized Cenvat credit was treated as refundable in cash where the factory had closed and central excise registration had been surrendered, leaving no possibility of utilisation against future clearances. The prior Revenue-referred decision was distinguished because it involved a different factual setting in which credit could still be carried forward in the account. On these facts, the order allowing cash refund of the unused credit was upheld, consistent with decisions recognising refund when business operations have ceased.

---

---

Issues: Whether unutilized Cenvat credit was refundable in cash on closure of the factory and surrender of central excise registration.

Analysis: The factory had been closed and the registration surrendered, so the credit could not be utilised against future clearances. The earlier decision relied on by the Revenue concerned a different factual situation where credit could be carried in the account, whereas the present case involved no scope for further utilisation. The order granting cash refund of the unutilized credit was therefore consistent with the reasoning applied in decisions approving refund upon closure of operations.

Conclusion: Cash refund of the unutilized Cenvat credit was held permissible on the facts of this case, and the Revenue's challenge failed.

---