TaxTMI 
TaxTMI 
2014 (6) TMI 936
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Over & above the value addition norms Duty paid on HV/LV Coils used in repairing of old transformers Total 1. 795/13 125/CE/Rfd/AC/2012-13 dated 21-8-2013 April, 2010 to March, 2011 (Differential refund claim for the year 2010-11) 2,52,946/- 1,19,036/- 3,71,982/- 2. Briefly stated, M/s Alba Power Pvt. Ltd., SIDCO, Electronic Complex, Rangreth, Srinagar, J&K (hereinafter referred to as 'the Respondents') holding Central Excise Registration No. AAECA9481CXM001, are engaged in the manufacture of Power Distribution Transformers, Servo Voltage Stabilizers, UPS Systems and Inverters falling under Chapter Sub-heading No. 85042100 & 85042200 of the 1st Schedule to the Central Excise Tariff Act, 1985 ('tariff act' in short). The Respondents are availing benefit of area based exemption under Notification No. 56/2002-CE dated 14-11-2002, as amended (hereinafter referred to as 'the notification'). The notification was amended vide amending notification Nos. 19/2008-C.E., dated 27-3-2008 and 34/2008-C.E., dated 10-6-2008, ('the amending notifications' in short), which restricted the admissibility of refund under the notificat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nce placed on the case laws of Collector v. PSEB [1996 (83) E.L.T. A106 (S.C.)], Commissioner of C.Ex. J&K Jammu v. Continental Transformers [2012 (285) E.L.T. 435], Commissioner of C.Ex. J&K, Jammu v. Continental Transformers [2012 (285) E.L.T. 106], Commissioner of C.Ex. J&K, Jammu v. Western Hardware Inds. [2007 (212) E.L.T. 509]. (ii) That in terms of the amending notifications, refund is admissible in terms of the value addition norms. Though, the Respondents have obtained interim stay against the operation of amending notifications vide Hon'ble High Court of J&K's interim stay order dated 24-3-2011, in OWP No. 217/2011, however, the Revenue has approached the Hon'ble High Court of J&K for modification of the stay granted to the Respondents and the Hon'ble High Court has vide its interim order dated 8-5-2013, in IA (OWP) No. 572/2013, ordered that the following directions shall be followed:- "We have heard learned counsel for the parties on the question of stay of the impugned judgment. Having done so, we direct that operation of the impugned judgment shall remain stayed till further orders, subject to the petitioners releasing to the respon....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l filed by Revenue, cross objections filed by the Respondents and records of personal hearing. The issues before me for decision are :- (i) Whether refund of an amount paid as duty on non-excisable activity of repair of old transformers is admissible, under the notification -if not- whether the refund availed thereon, by way of self credit is required to be deducted from the year end differential refund amount payable, under the notification. (ii) Whether the year-end differential refund for the amount between the duty paid through PLA, admissible under the un-amended notification and the refund in terms of the value addition norms inserted in the notification, vide the amending notifications, is admissible to the Respondents for the month of March, 2011, on the ground that the operation of the amending notifications remained under stay during the period from 24-3-2011 to 8-5-2013. 6. As regards admissibility of refund of an amount paid as duty on HV/LV coils used in repair of old transformers which was not required to be paid, I find that the adjudicating authority has not deduc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gets passed on to the consumer and the assessee does not suffer financial loss as he gets excise duty back from the buyer." 7. I, however, find that having agreed with the Revenue's contention of not admissibility of refund of an amount paid as duty on non-excisable activity of repair, the Respondents have debited back the same through their Cenvat credit account which they are required to pay back through their PLA account because refund under the notification was earlier availed by them, by way of self credit, in the PLA, after exhausting the Cenvat credit amount available with them. Accordingly, I hold that the Respondents are required to pay back the refund erroneously availed by them for the amount paid as duty on HV/LV coils used in the repair of old transformers by way of debit entry in the PLA account and allow them to take re-credit of the said amount in their Cenvat credit account. 8. Regarding admissibility of differential refund between the duty paid through PLA for the month of March, 2011 in terms of the un-amended notification and the refund admissible in terms of the value addition norms inserted in the notification, vide the amending notifications, ....