Amended Cenvat refund rules and limitation defeated a later claim for unutilized credit on factory closure.

The amended Rule 5 refund regime governed a later claim for refund of unutilized Cenvat credit filed after 01.04.2012, and the absence of a saving clause meant the earlier accumulation of credit did not preserve a refund entitlement on closure of factory. Section 6 of the General Clauses Act did not assist because the claim was treated as a fresh refund request made on a new ground after the amendment. The refund claim also failed on limitation, having been filed more than six years after the alleged closure, so the asserted entitlement was not enforceable.

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Issues: Whether the appellant was entitled to refund of unutilized Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2004 on the ground of closure of factory after the amendment with effect from 01.04.2012, and whether the refund claim was barred by limitation.

Analysis: The refund claim in dispute was filed after the amendment to Rule 5 of the Cenvat Credit Rules, 2004, and the amended rule contained no saving clause preserving a right to refund on the ground of closure of factory for credits accumulated earlier. Section 6 of the General Clauses Act, 1977 was considered, but it was held not to assist the appellant because the present claim was a separate refund claim filed after 01.04.2012 on a new ground, and no vested right to such refund had been shown to survive the amendment. The claim also suffered from delay, having been filed more than six years after the alleged closure of the factory.

Conclusion: The appellant was not entitled to refund of unutilized Cenvat credit on the ground of closure of factory, and the claim was also time-barred.

Final Conclusion: The amended refund regime governed the claim and did not preserve the asserted entitlement, with the additional consequence that the claim failed on limitation as well.

Ratio Decidendi: In the absence of a saving clause, an amended refund provision applies to a later claim even if the credit had accumulated earlier, and no refund right can be enforced on the ground of closure of factory where the claim is filed beyond the prescribed limitation period.

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