2009 (6) TMI 850

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....ts. 2. As per the facts on record, the assessee is engaged in processing/manufacturing of fabrics. On 16-12-1998, Compounded Levy Duty scheme was introduced in respect of fabrics, which required the assessee to pay duty out of PLA. Prior to the said date, the respondents were availing deemed Modvat credit in terms of Notification No. 29/96-C.E. (N.T.) dated 3-9-96. As on 16-12-98 the appellants were having balance of accumulated deemed credit in account. 3. The Compounded Levy Scheme was effective up to 28-2-2001. The deemed credit facility was again introduced vide Notification No. 7/2001-C.E. (N.T.) dated 1-3-2001. As the appellants were having accumulated credit of Rs. 1,65,65,844/- and of Rs. 1,64,081/- availed by them i....

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....that deemed credit carried under Notifn. No. 29/96 would lapse, therefore, credit accumulated by the appellants on 16-12-98 was sought to be used by them after the withdrawal of compounded levy scheme. I find that on the similar issued this authority earlier also had decided that the independent textile processors were entitled for cash refund of deemed credit lying unutilized on 16-12-98 due to introduction of compounded levy scheme. These decisions have also been approved by CEGAT. In the case of CCE, Ahmedabad v. Omkar Textiles Mills (supra), CEGAT in identical situation as narrated in para 4, where the units located in Ahmedabad were ordered reversal of credit with interest by the Superintendent having jurisdiction over their factories,....

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.... that had the appellants claimed cash refund of unutilized deemed credit within time stipulated under Section 11B, they would have been entitled for the same. It has been earlier held by this authority in many cases that no time limit prescribed under Section 11B was applicable to cash refund claim of unutilized deemed modvat credit lying in the balance of deemed credit register of a manufacturer on 16-12-98 on introduction of compounded levy scheme. In view of the above findings, the impugned actions of the lower authority are set aside and the subject appeal is allowed with consequential relief." 6. As is clear from the above, the Commissioner (Appeals) has followed the precedent decision of the Tribunal as also of the various ....