2000 (10) TMI 103 - AT - Central Excise

Tribunal affirms refund of credit under Chapter 39 Tariff classification. Revenue appeal rejected.

The Tribunal upheld the decision to grant the refund of credit amounting to Rs. 1,16,28,268.60 to the respondents based on the classification of products ... Modvat credit - Refund Issues involved: Appeal against order granting refund of credit under Central Excise Act.Summary:The appeal was filed by the Revenue against the order of the Commissioner of Central Excise (Appeals), Allahabad, granting the appellants a refund of credit amounting to Rs. 1,16,28,268.60. The case involved the classification of products by the respondents and the subsequent claim for refund based on the classification under Chapter 39 of the Tariff. The Tribunal set aside the classification determined by the Department and allowed the appeals of the assessees, leading to the refund claim. The Revenue contended that granting the refund would result in unjust enrichment to the respondents, but the Tribunal disagreed, citing relevant provisions of the Central Excise Act and previous decisions supporting the refund of credit of duty to the applicants. The lower Appellate Authority's finding that the respondents were entitled to the refund amount did not have any legal infirmity, and the Tribunal upheld the impugned order, rejecting the Revenue's appeal.In conclusion, the Tribunal upheld the decision to grant the refund of credit to the respondents, amounting to Rs. 1,16,28,268.60, based on the classification of products under Chapter 39 of the Tariff and the relevant provisions of the Central Excise Act. The appeal by the Revenue was rejected, and the Tribunal's decision was in favor of the respondents.