TaxTMI 
TaxTMI 
2017 (4) TMI 1163
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....g medicine, namely, Odoxin, which was governed by direct price control order. (ii) A duty of 4% was paid on Odoxin whereas input credit utilized in manufacture of Odoxin suffered a duty of 10 per cent on local inputs and 14% on imported inputs. As a result, there was wide gap between CENVAT credit availed and duty paid on the final product. (iii) The appellant was unable to utilize the CENVAT credit by paying the duty on final product resulting into a credit balance of Rs. 1,34,45,987/- lying in CENVAT credit. (iv) The appellant closed their factory on 31.03.2011 and applied for cash refund of the CENVAT amount of Rs. 1,34,45,987/- lying in their CENVAT credit account. (v) The appellant's application for ....
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....n specific objectives of policy, on the one hand, and those which are merely procedural and technical in their nature, on the other, must be kept clearly distinguished. An eligibility criteria to get refund calls for a strict construction, although construction of a condition thereof may be given a liberal meaning if the same is directory in nature. The doctrine of substantial compliance is a judicial invention, equitable in nature, designed to avoid hardship in cases where a party does all that can be reasonably expected of it, but failed or faulted in some minor or inconsequent aspects which cannot be described as the "essence" or the "substance" of the requirements. Like the concept of "reasonableness", the acceptance or otherwise of a p....
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....ing the non-compliance of directory requirement. In cases where substantial compliance has been found there has been actual compliance with the statute, albeit procedurally faulty. The doctrine of substantial compliance seeks to preserve the need to comply strictly with the conditions or requirements that are important top invoked a tax or duty exemption and to forgive non-compliance for either unimportant and tangential requirement or requirements that are so confusingly or incorrectly written that an earnest effort at compliance should be accepted. SUBSTANCE AND ESSENCE OF STATUTE ARE PARAMOUND CONSIDERATIONS 5.9 The test for determining the applicability of the substantial compliance doctrine has been the subject of a m....
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....redit would have remained unutilized in the account books, such credit cannot be allowed by way of cash. 5.13 While arriving at the aforesaid conclusion, the Larger Bench in para 11 of the order recorded the fact that in the case before them debt entry in credit account was made by the Appellants on 23.12.2000 while central excise registration was surrendered bys the assessee in Sept ember, 2000 i.e. before making the debt entry in RG - 23 account. Further observation of the Bench was even if the amounts towards duty would not have been debited by them in the said account, the same would have been remained unutilized. As such, on the success of their appeal before the Commissioner (Appeals), they cannot claim the refund of the same....
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.... refund of Modvat credit a has been rightly pleaded by Revenue and present reference is neither the case of "otherwise" due of the refund nor the case of exported goods. Similarly absence of express grant in statute does not imply ipso facto entitlement to refund. So also absence of express grant is an implied bar for refund. When right to refund does not accrue under law, claim thereof is inconceivable. Therefore, present reference is to be answered negatively and goods and for no other reason whatsoever that may be. As has been stated earlier that equity, justice and good conscience are the guiding factors for Civil Courts, no fiscal Courts are governed by these concepts, the present refere3nce is bound to be answered in favour of Revenue....