CENVAT refund by credit upheld where cash refund was not claimed before the lower authorities.

Refund of excise duty sanctioned through CENVAT credit was upheld where the assessee had not sought cash payment before the lower authorities. The absence of a cash-refund plea at the proper stage meant there was no infirmity in directing the refund to be adjusted by credit in the CENVAT records. The assessee was nevertheless left free to pursue cash refund before the original authority in accordance with law.

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Issues: Whether refund of excise duty, sanctioned by credit in the relevant CENVAT records, could be directed to be paid in cash when the assessee's factory had closed and the plea for cash refund had not been raised before the lower authorities.

Analysis: The refund had already been allowed by credit in the relevant CENVAT records, and the assessee had not claimed cash payment either before the original authority or before the appellate authority below. In the absence of such a plea at the appropriate stage, no infirmity was found in the direction that the refund be adjusted through credit. The assessee was left free to seek cash refund before the original authority in accordance with law.

Conclusion: The direction to grant refund by credit in the CENVAT records was upheld, and the claim for cash refund was not accepted in this appeal.

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