2017 (7) TMI 23

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....of unutilized CENVAT credit, amounting to Rs. 40,26,692/-, the authorities below sanctioned the refund, only to the extent of Rs. 39,19,239/-. Thus, in effect, the authorities below excised the refund claim to the extent of Rs. 77,453/-. 3. To be noted, the Assessee has claimed the refund, in terms of Rule 5 of the CENVAT Credit Rules, 2002 (in short, 'the 2002 Rules') read with Notification No. 11/2002-Central Excise (N.T.) dated 1.3.2002 (in short, 'the 2002 notification'). The said notification, in terms of Rule 5 of the 2002 Rules, provides for safe guards, conditions and limitations, for availment of refund of CENVAT credit of specified duty, allowed in respect of inputs, used in or in relation to manufacture of fina....

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.... Rs.39,49,239/- 8) Refund claimed Rs.40,26,692/-   4. The Assessee claims that the CENVAT credit available in its account as on 31.12.2003, which is the date in which the quarter in issue ends, is a sum of Rs. 1,38,66,605/-. 4.1. As against this, the Revenue claims that the credit, which is unutilised and is available for payment of refund, is only a sum of Rs. 39,49,239/-. 4.2. The difference in the stands taken, as would be evident from the calculations set out above, emnated from the entries made against seriatim 6(a) and 6(c). The Revenue has adjusted against the closing balance in the CENVAT credit account, as on 31.12.2003, which is the sum of Rs. 1,38,66,605/-, the amounts available as input credit against raw....

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.... counsel for the Revenue, says that the adjustment made with regard to input credit available qua raw material and finished goods lying in stock, is tenable. It is submitted that after the said adjustment is made and, only if, there is credit available can refund be made in favour of the assessee, albeit, to the extent of the credit available. It is thus, the submission of the learned counsel that since, unutilised credit, to the extent of Rs. 39,49,239/- was available, the refund had to be restricted to the said amount. 8. We have heard the learned counsel for the parties and perused the records. 9. According to us, the authorities below have committed an error in as much as in adjusting the input credit qua stock of raw materials an....