Refund of accumulated deemed credit sustained where utilisation was not possible and departmental custody of records supported the claim

Refund of accumulated deemed credit was sustained where the record showed the assessee was unable to utilise the credit and the relevant credit register remained in departmental custody. On that factual basis, the lower appellate authority concluded that the refund conditions were met and that rejection of the refund claims was unjustified. The tribunal found no infirmity in that reasoning and rejected the Revenue's contention that the credit had already been utilised. The sanction of refund was accordingly upheld.

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Issues: Whether the refund claims of accumulated deemed credit were rightly sanctioned and the Revenue's challenge to the refund denial was sustainable.

Analysis: The lower appellate authority had examined the record and noted that the departmental officer had ed that the assessee was not in a position to utilise the deemed credit and that the relevant credit register was in the custody of the department. On that basis, it concluded that the conditions for refund were satisfied and that the adjudication order rejecting the refund claims could not be sustained. The appellate tribunal found no infirmity in that reasoning and did not accept the Revenue's objection that the credit had already been utilised.

Conclusion: The refund sanction was upheld and the Revenue's challenge failed.

Final Conclusion: The order allowing the refund claims stood affirmed, and the Revenue's appeal was dismissed.

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