2016 (6) TMI 673

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... AC (AR)   ORDER It is submission of the appellant that the CENVAT credit remaining unutilized may be refunded under Rule 5 of the CENVAT Credit Rules, 2004 since the credit so remaining has no possibility of utilization in future, because of the closure of the unit. Appellant relies on the decision of the Hon'ble High Court of Karnataka upheld in the case of Union of India Vs. Slova....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ods cleared for export. There is no rule at all to entertain refund of the unutilized CENVAT credit in respect of use of the input in the manufacture for domestic clearances. However, cases where assessees are not able to use the unutilized CENVAT credit due to closure of their business or any other circumstances beyond their control, law cannot be interpreted to cause absurdity or impossibility. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ch circumstance, it may be considered that the duty element paid by the assessee to the treasury shall serve no useful purpose of the taxpayer in the event of closure of the unit or impossibility of adjustment. The State should not be enriched at the cost of the citizen in such circumstance following the ratio laid down in (i) Salonah Tea company Ltd. Etc. Vs. Superintendent of Taxes, Nowgong & Or....