Cenvat credit refund on factory closure is limited by statutory time bar under the excise refund provision.

Refund of accumulated and unutilized Cenvat credit on closure of a factory was held to be governed by the Cenvat Credit scheme and Rule 5 of the Cenvat Credit Rules, 2004, which permit refund only within the limitation period prescribed by Section 11B of the Central Excise Act, 1944. The text notes that Cenvat credit is meant for adjustment against excise duty on final products and does not, by itself, create a general entitlement to cash refund when the balance cannot be utilised. As the claim was filed more than three years after the relevant date, beyond the statutory one-year period, it was barred by limitation and was rightly rejected.

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Issues: Whether the refund of accumulated and unutilized Cenvat credit on closure of the factory was maintainable, and whether the claim was barred by limitation under the statutory refund provision.

Analysis: The refund claim was examined in the context of the Cenvat Credit scheme, under which credit is available for utilisation against excise duty on final products and does not, by itself, create a right to cash refund on inability to utilise the balance. The claim was also considered under Rule 5 of the Cenvat Credit Rules, 2004, which provides refund only within the time limit prescribed by Section 11B of the Central Excise Act, 1944. Since the claim was filed more than three years after the relevant date, the statutory period of one year had expired, and the authority had no power to extend limitation by applying the general law of limitation.

Conclusion: The refund claim was barred by limitation and was rightly rejected; the appeal failed.

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