CENVAT credit refund in cash denied where factory closure alone did not create entitlement under the statutory scheme.

Unutilized CENVAT credit could not be refunded in cash merely because the factory had closed, as credit must be adjusted under the statutory scheme unless law expressly permits cash refund. The Tribunal followed the Larger Bench view that absence of an express bar does not create a right to cash refund, and that such refund is recognised only in legally permitted situations such as export. The claim for cash refund therefore failed, and the impugned order was sustained.

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Issues: Whether unutilized CENVAT credit, claimed on the ground that the factory had closed, could be refunded in cash instead of being allowed only as credit.

Analysis: The Tribunal relied on the Larger Bench view that Modvat/CENVAT credit is to be adjusted in accordance with the statutory scheme and that unutilized credit is not refundable in cash unless the law expressly provides for such refund. It was held that the absence of an express statutory bar does not create a right to cash refund, and that refund of unutilized credit is recognized only in legally permitted situations such as export. The earlier contrary view was not treated as binding in the presence of the Larger Bench ruling.

Conclusion: Cash refund of the unutilized CENVAT credit was not admissible, and the claim failed.

Final Conclusion: The impugned order was sustained and the appeal was dismissed.

Ratio Decidendi: Unutilized CENVAT credit cannot be refunded in cash unless a statute expressly authorizes such refund; closure of the factory by itself does not create that entitlement.

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