Refund of unutilised excise credit upheld where Rule 57F(13) was read broadly to cover accumulation for any reason.

Unutilised central excise credit, including credit relatable to Additional Duties of Excise, was held refundable under Rule 57F(13) of the Central Excise Rules, 1944 where it could not be used for any reason. The Tribunal construed the words "any reason" broadly and rejected a restricted reading that would deny refund merely because the credit arose under the mechanism of Notification No. 24/95-C.E. (N.T.). It also noted that the Board circular supported refund under the scheme. The refund of accumulated credit was therefore admissible, and the Revenue's challenge failed.

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Issues: Whether accumulated central excise credit, including credit relatable to Additional Duties of Excise, was refundable under Rule 57F(13) of the Central Excise Rules, 1944 when it could not be utilised for any reason.

Analysis: The Tribunal held that the expression "any reason" in Rule 57F(13) was not to be given a restricted or qualified meaning. The accumulation of unutilised credit, even if arising in the context of the restrictive mechanism under Notification No. 24/95-C.E. (N.T.), did not justify denial of refund. The Board circular relied upon by the respondent also supported grant of such refund under the scheme.

Conclusion: The refund of the unutilised credit was admissible and the Revenue's challenge failed.

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