2017 (5) TMI 1189

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....and Texturised Polyester Yarn falling under Chapter 54 of Central Excise Tariff. ii) During the period April 2004 to Feb. 2006, duty rates of inputs Partially Oriented Yarn (POY) was higher than the duty rates of final goods, Twisted/texturised polyster filament yarn. iii) The appellant carried out manufacturing activity availing Cenvat Credit and discharged duty on final goods out of Cenvat Credit account. However, there was accumulation of Cenvat Credit on account of inverted duty structure. iv) With effect from 1.3.2006, the appellant stopped claiming Cenvat Credit on Inputs and opted to work under Excise Exemption Notification No.30/2004-CE dt 9.7.2004 as amended. The Exemption Notification exempt the final goods manufactured by ....

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....t in all the cases; it authorizes grant of refund only in case where final products have been exported. Thus, there is no provision in law of Central Excise for grant of refund of such accumulated credit to the appellant. 5.1 The Larger Bench of the Tribunal on this subject, in the case of M/s Steel Strips (supra) observes as under: No person has vested right in any course of procedure "No person has a vested right in any course of procedure. He has only the right of prosecution or defence in the manner laid down by law. He has no right than to proceed according to the mandate of the statute governing the subject. Claim of refund is not a matter of right unless vested by law. That would depend upon the object of the statute and eligibi....

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.... by notification: Provided that no refund of credit shall be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims a rebate of duty under the Central Excise Rules, 2002, in respect of such duty." The scheme of Cenvat credit allows duty on finished goods to be paid to the extent possible from the Cenvat credit availed on the inputs used in the manufacture of finished goods. The scheme basically prevents the cascading effect in indirect taxes. Further, when goods are exported under bond, no duty is payable on the finished goods and, therefore, the Cenvat credit on inputs remains unutilized. As the policy of the Government is that tax on exported goods is zero rate....