Common registration and Cenvat credit pool allowed refund of credit deposited for one unit after consolidation.

Common registration for both units meant credit linked to the grinding unit could not be denied merely because it was taken before formal grant of registration. Once the units were treated as a single registered entity, the Cenvat credit framework did not prohibit a common credit pool for the integrated unit, and the credit attributable to the grinding unit merged into the consolidated registration. The refund claim for the amount deposited towards credit utilisation was therefore maintainable, and the assessee was entitled to the refund.

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Issues: Whether the assessee was entitled to refund of the amount deposited towards credit utilisation relating to one unit after grant of common registration for both units.

Analysis: The dispute had already been settled in earlier proceedings holding that the two units were entitled to common registration and that credit connected with the setting up of the grinding unit could not be denied merely because it was taken before the common registration was formally granted. Once the units were brought under a single registration, there was no prohibition in the Cenvat credit framework against a common credit pool for the combined unit, and the credit attributable to the grinding unit stood merged with the credit position of the integrated registration.

Conclusion: The refund claim was maintainable and the assessee was entitled to the amount deposited.

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