Cement manufacturer wins refund claim for denied cenvat credit on mine inputs.

The appellant, a cement manufacturer, was denied cenvat credit on inputs/capital goods used in mines by the authorities. Despite the denial and subsequent unsuccessful appeals, the appellant reversed the credit under protest. Following a Supreme Court decision allowing such credit, the appellant filed refund claims which were initially rejected. The Tribunal ruled in favor of the appellant, stating that the unappropriated deposit entitled them to the refund. Emphasizing the importance of appropriation under the Central Excise Rules, the Tribunal set aside the previous orders and allowed the appeals, granting the appellant the refund claim.

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Issues:
1. Denial of cenvat credit on inputs/capital goods used in mines by a cement manufacturer.
2. Rejection of refund claims by the authorities.
3. Appropriation of the amount paid under protest.
4. Entitlement to refund claim without appropriation of the amount.
5. Interpretation of Central Excise Rules regarding appropriation of duty paid under protest.

Analysis:
1. The appellant, engaged in cement manufacturing, availed cenvat credit on inputs/capital goods used in mines. The authorities denied the credit, stating that the mines were not part of the factory. A show cause notice was issued for the period July 2001 to March 2004, resulting in the denial of cenvat credit, which was confirmed. The appellant appealed to the Commissioner (A) but was unsuccessful. For the period April 2004 to September 2004, the appellant reversed the credit under protest and informed the department.

2. Subsequently, based on a Supreme Court decision allowing cenvat credit for inputs/capital goods used in mines by cement manufacturers, the appellant filed refund claims. However, the claims were rejected on the grounds of not keeping the issue alive. The appellant challenged these rejections.

3. The core issue was whether the appellant was entitled to a refund claim for the reversed cenvat credit that was never appropriated by the authorities. The Tribunal found that since the amount remained as a deposit without appropriation, and considering the Supreme Court decision, the appellant was entitled to the refund.

4. The Tribunal distinguished a previous case cited by the respondent where the amount paid under protest was appropriated, stating that the facts were different. Referring to the Central Excise Rules, it highlighted that the amount paid under protest had not been appropriated at any stage, making it a deposit with the department, thus supporting the appellant's entitlement to the refund claim.

5. Consequently, the impugned orders were set aside, and the appeals were allowed with any consequential relief. The judgment emphasized the importance of appropriation of duty paid under protest as per the Central Excise Rules, ultimately ruling in favor of the appellant's entitlement to the refund claim.

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