Refund of unutilized Cenvat credit remanded for fresh factual verification amid disputes over default, registration, and factory transfer

Entitlement to refund of unutilized Cenvat credit could not be finally decided because material facts remained disputed, including the alleged transfer or intended sale of the factory, default in duty payment, restriction on credit utilisation during the default period, and the effect of surrender of registration and claimed absence of government dues. The record required verification of the relevant documents and factual position before any conclusive finding on refund eligibility. The matter was therefore remanded to the Commissioner (Appeals) for fresh examination after giving both sides an opportunity to present their case.

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Issues: (i) Whether the appeal required remand for fresh examination of the factual controversy relating to refund of unutilized Cenvat credit and allied compliance issues.

Analysis: The facts bearing on entitlement to refund were not treated as settled. The record showed dispute on material aspects, including the alleged transfer or intended sale of the factory, the effect of default in payment of duty, the restriction on utilisation of Cenvat credit during the period of default, and the correctness of the claim based on surrender of registration and absence of government dues. In these circumstances, the appellate finding was considered unsuitable for final determination without verification of the relevant records and factual position.

Conclusion: The matter was required to be re-examined afresh by the Commissioner (Appeals), with opportunity to both sides, and the appeal was remanded.

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