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of <h1>Tribunal upholds dismissal of refund claims on excise duty for grey fabrics, citing retrospective rule amendment.</h1> The Tribunal upheld the Commissioner (Appeals)' dismissal of refund claims for additional excise duty (AED) on grey fabrics used in manufacturing exported ... Refund of AED (GSI) so paid on the inputs that went into the manufacture of the exported goods - rejection on the ground that the appellants are not entitled to take Cenvat credit of AED (GSI) paid on the grey fabrics as the final product is exempted from AED (GSI) - Held that: - the situation has changed by the Notification introducing amendment of Cenvat Credit Rules, 2002 retrospectively whereby the utilization of credit of AED(GSI) has been restricted to the period prior to 31.03.2000 also which is the period pertaining to the refund claims of the present appeal - due to the introduction of the amendment restricting the utilization of credit of AED (GSI), refund not allowed - appeal dismissed - decided against appellant. Issues:Refund claims rejection based on Cenvat credit of additional excise duty (AED) on grey fabrics used in manufacturing exported goods prior to 01.04.2000.Analysis:The appellants, engaged in manufacturing and exporting tires, sought refund of AED (GSI) paid on inputs used in manufacturing exported goods. Adjudicating authority rejected claims stating appellants not entitled to credit as final product exempt from AED (GSI). Commissioner (Appeals) upheld rejection, leading to appeals. Appellant's counsel cited Tribunal judgments favoring refunds for similar issues in different periods. Cenvat Credit Rules 2002 amended retrospectively, restricting credit utilization of AED (GSI) before 31.03.2000. Department appealed Tribunal's order to High Court, obtaining interim stay. Respondent argued appellants ineligible for AED (GSI) credit even pre-31.03.2000, hence refund claim invalid.The Tribunal noted previous refund allowance in appellant's case, referencing Board's circulars on AED (GSI) refund leviable on finished product. However, retrospective amendment to Cenvat Credit Rules 2002 restricted AED (GSI) credit utilization pre-31.03.2000, affecting present refund claims period. Tribunal concluded amended rules rendered previous refund orders inapplicable. With matter pending before High Court, upheld Commissioner (Appeals) dismissal of refund claims. Decreed no interference warranted, thus dismissing appeals.
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