2017 (11) TMI 1097

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.... that the issue is regarding the refund of the amount lying unutilized in the Cenvat credit account of the respondent. It is the claim of the respondent in the refund claim filed that the preventive officers during the visit of the factory had restricted them from using the Cenvat credit available for the clearances of tops. It is also the submission that they had been directed to pay entire duty liability on the tops through PLA. Subsequently, they wrote a letter dated 24^th June, 2008 to the jurisdictional Central Excise Commissionerate informing the details. It is also submitted that when they preferred the refund claim, clearly mentioned the reason for filing the refund claim is due to the unutilized Cenvat credit lying in balance which....

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....sh; that the top which was procured on payment of duty was used for manufacturing of tops which was dutiable and not covered under Notification No.30/2004 till 7^th July 2009 and the entire credit which has been sought as refund is for the period in question i.e. till 7^th July 2009; the first appellate authority has correctly held that they are eligible for refund claim. It is his submission that the tops were fully exempted from the payment of duty under Sr. No.10 only if they are made out of fibres. He submits that similar issue has been decided by the Hon'ble High Court of Karnataka in the case of Union of India Vs. Slovak India Trading Co. Pvt. Ltd. - 2006 (201) ELT 559 (Kar.), wherein it was held that if the unit is closed and the Cen....

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.... Bombay High Court, by its judgment dated 16.6.2009 was pleased to hold that the appellants are entitled to the benefit of exemption under S. No.10 of Notification No.30/2004 dated 9.7.2004 in respect of tops manufactured out of duty paid tow and accordingly allowed the said petition. In respect the said judgment, the only dispute raised by the department is no longer res-integra and the appellants become entitled to refund of the accumulated unutilised credit balance of Rs. 31,78,019/- lying in their Cenvat Credit Account. The Appellants have submitted since they were prevented to use Cenvat credit, they had to pay Rs. 40,87,218/- in cash. Now it is settled that they were eligible for utilisation of Cenvat credit. However, they are not ....