2006 (1) TMI 27

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.... were receiving electrical stampings and laminations manufactured by one M/s. Guest Keen & Williams Ltd., (GKW) without payment of duty in terms of the Notification No. 64/86-C.E., dated 10-2-1986 and against CT-2 certificate. However, the department entertained a view that such exemption was not available, inasmuch as the appellant was using the said stampings and laminations in the manufacture o....

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....aid goods, by their supplier M/s. GKW Ltd. The said refund claim stands rejected by the authorities below on the ground that since the manufacturer of laminations and stampings had not reversed the Modvat credit, there would be  loss to the department and the refund cannot be sanctioned. The Commissioner (Appeals) observed that if refund claim is sanctioned, the stampings and laminations woul....

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....g of refund, the excise authorities can also approach the manufacturer for reversal of the Modvat credit. But refund cannot be denied on the ground that the manufacturer has not reversed the credit. The refund has arisen as a consequence of decision on the dispute in favour of the appellants and the reversal of the credit would arise as a consequence of grant of refund. Modvat credit cannot be ask....