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Issues: Whether, under Notification No. 225/86, any unutilised amount of duty attributable to specified duty-paid inputs could be refunded in cash to the assessee.
Analysis: The notification granted exemption to specified final products to the extent equivalent to the duty already paid on specified inputs used in or in relation to manufacture. The benefit was available at the stage of removal of the goods. The notification contained no provision authorising payment of cash refund for any balance of duty credit or unutilised set-off. In the absence of an express refund mechanism in the notification, the unutilised amount could not be treated as refundable in cash.
Conclusion: The claim for cash refund was not maintainable and the issue was decided in favour of the Revenue.
Final Conclusion: The appeal succeeded because the notification conferred only a duty exemption or set-off and did not create a right to cash refund of any remaining unutilised duty credit.
Ratio Decidendi: Where an exemption notification provides only for set-off or exemption to the extent of duty paid on inputs, cash refund of any unutilised balance cannot be granted unless the notification expressly so provides.
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