Supplementary refund claim through PLA accepted where notification had no express bar, subject to CENVAT reversal and separate interest payment.

A supplementary refund claim under Notification No. 39/01-C.E. was treated as maintainable where the amount had been paid through PLA/TR-6 challan as duty for the relevant month, even though the department later characterised it as a reversal of wrongly availed CENVAT credit. The notification contained no express bar against such a claim, and the payment was accepted in substance as duty on manufactured goods. The refund was to be sanctioned only after the corresponding CENVAT credit was reversed in the account and interest was paid separately in cash, so that the statutory position stood regularised.

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Issues: Whether the appellant was entitled to refund of the amount paid through PLA under Notification No. 39/01-C.E. and whether a supplementary refund claim was maintainable when the amount corresponded to wrongly availed CENVAT credit.

Analysis: The amount was paid through TR-6 challan as duty for the relevant month, and the record showed that it related to duty liability on manufactured goods. The fact that the department later treated it as reversal of wrong CENVAT credit did not, by itself, justify denying refund when the payment had in substance gone through PLA. The notification contained no express bar against a supplementary refund claim. At the same time, the wrongly availed credit had to be reversed in the CENVAT account and interest had to be paid separately in cash so that the statutory position stood regularised.

Conclusion: The refund claim was maintainable and the corresponding amount was directed to be sanctioned, subject to reversal of the CENVAT credit and payment of interest separately.

Final Conclusion: The appeal succeeded to the extent that the disputed amount became refundable after the appellant regularised the wrongly availed credit and paid the applicable interest.

Ratio Decidendi: In the absence of an express prohibition in the exemption notification, a supplementary refund claim is maintainable for an amount paid through PLA, provided the corresponding wrongly availed CENVAT credit is reversed and interest is discharged separately.

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