Refund of unutilized Cenvat credit on factory closure upheld under settled law on accumulated credit balances.

Unutilized Cenvat credit remaining after closure of a manufacturing unit was held refundable, because the accumulated balance could not be denied merely on the ground that it was not linked to exports. The settled position applied in Slovak India Trading Co. was treated as governing, and no distinguishing basis was shown to displace that principle. The appellate order directing refund was therefore sustained, and the Revenue's challenge failed.

---

---

Issues: Whether refund of unutilized Cenvat credit was admissible on closure of the factory.

Analysis: The refund claim arose from accumulated credit lying unutilized after closure of the manufacturing unit. The decision followed the settled position that, where manufacture has ceased and the credit balance remains unutilized, refund cannot be denied merely because the accumulation is not linked to export. The earlier ruling in Slovak India Trading Co. was treated as applicable, and the appellate challenge did not dislodge that principle.

Conclusion: Refund of unutilized Cenvat credit on closure of the factory was admissible, and the Revenue's challenge failed.

Final Conclusion: The impugned appellate order directing refund was sustained and the Revenue's appeal was rejected.

Ratio Decidendi: Unutilized Cenvat credit remaining in balance on closure of the manufacturing unit is refundable where the settled legal position recognises such refund and the challenge does not show a distinguishing basis to deny it.

---