2016 (8) TMI 293

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.... the appellant is a private limited company registered under Companies Act, 1956 and is engaged in the manufacture of ACSR conductors. Owing to lack of business for their excisable products and due to suffering heavy losses, the appellants stopped their production in October 2006 and cleared all their closing stocks on payment of duty in April 2007 and thereafter surrendered their Central Excise registration certificate to the Department. On the date of surrendering their registration certificate, the appellant had a total unutilized balance of Rs. 14,22,743/- lying in their PLA and CENVAT Credit account. Since they were not in a position to utilize the same in any manner they preferred a refund application on 6.8.2007. Thereafter appellant....

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....d. 2010 (256) E.L.T. 523 (Bom.) e) Century Rayon   Twisting Unit V. CCE, 2015 (325) E.L.T. 205 (Tri.-Mum) f) CIT V. Thana Electricity Supply Ltd. 1994 (206) ITR 727 (Bom.) The Hon'ble  High Court of Karnataka in the case of Union of India V. Slovak Trading Co. Pvt. Ltd. cited supra analysed Rule 5 of the Cenvat Credit Rules 2002 (which is identically worded to Rule 5 of the Cenvat Credit Rules 2004) and answered the following substantial question of laws, which are impugned in the instant case also: a) Whether under the facts and circumstances of the case the Tribunal is right in ordering for refund even if there is no provision in Rule 5 of Cenvat Credit Rules 2002, to refund the unutilized credit? ....

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....ited supra. It was held that Rule 5 of the Cenvat Credit Rules did not expressly prohibit refund of unutilized cenvat credit where there was no manufacture due to closure of factory. Moreover since the assessee has come out of modvat scheme, refund of unutilized cenvat credit had to be made as per Section 11B of the Central Excise Act. The learned counsel further submitted that the judgments of the Karnataka High Court which was affirmed by the Supreme Court has been relied upon in the case of CCE, Hyderabad Vs. Apex Drugs & Intermediates Ltd. reported in 2014 (314) E.L.T. 729 and the same has been affirmed by the High Court of Andhra Pradesh reported in 2015 (322) E.L.T. 834 and has also been followed by the Bombay Bench of the Tribunal in....

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....nput or input service is used in the manufacture of final product which is cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate product cleared for export, or used in providing output service which is exported, the cenvat credit in respect of the input or input service so used shall be allowed to be utilized by the manufacturer or provider of output service towards payment of, (i) Duty of excise on any final product cleared for home consumption or for export on payment of duty, or (ii) Service tax on output service, and where for any reason such adjustment is not possible, the manufacturer or the provider of output service shall be allowed refund of such amount su....