2018 (6) TMI 637

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....inery and inventory owned by them to M/s. Renault Nissan Automotive India Pvt. Ltd. (herein after referred to as M/s.RNAIPL). The business change scheme accorded only to transfer of assets to M/s. RNAIPL and the liabilities would rest with the appellant. Thereafter, the appellant surrendered their registration certificate on 10.4.2012 and became non-functional. They then filed a refund claim on 28.1.2013 for Rs. 3,62,58,851/- for the CENVAT credit balance and since they had utilized the balance on various occasions to the tune of Rs. 3,37,40,140/-, under intimation to the department filed revised refund claim to the tune of Rs. 25,18,712/- only. Show cause notice dated 15.9.2015 was issued as to why the refund claim should not be denied. Af....

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....n issue with regard to refund of amount in PLA amount which was sanctioned by the original authority. To support that the CENVAT credit which is lying in balance in the account due to closure of factory, has to be refunded to the assessee, the ld. consultant relied upon the decision in the case of Union of India Vs. Slovak India Trading Co. Pvt. Ltd. - 2007 (1) TMI 556 - SC. That the Hon'ble High Courts in the following cases have taken a similar view:- (a) M/s. Lav Kush Textiles Vs. Commissioner of Central Excise - 2017 (5) TMI 1021 - Rajasthan High Court (b) Commissioner of Central Excise Vs. Apex Drugs and Intermediaries Ltd. - 2011 (9) TMI 964 - AP High Court (c) Rama Industries Ltd. Vs. Commissioner of Central Excise, Chandigarh - 2....

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....e non-functional with effect from 10.4.2012. Thus they have ceased to be manufacturer of cars with effect from 10.4.2012 due to closure of unit / surrender of Central Excise registration. A similar situation was analyzed by the Hon'ble High Court of Karnataka in the case of Union of India Vs. Slovak India Trading Co. Pvt. Ltd. - 2006 (7) TMI 9 - Karnataka High Court, wherein it was observed as under:- "4. Admitted facts would reveal of a claim of cash refund and admitted facts would reveal of rejection at the hands of the Assistant Commissioner and also the appellate authority. The Tribunal has chosen to allow the claim application on the ground that refund cannot be rejected when the assessee goes out of Modvat scheme or when the Company ....

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....n our view, is fully justified in ordering refund particularly in the light of the closure of the factory and in the light of the assessee coming out of the Modvat Scheme. In these circumstances, we answer all the three questions as framed in para 17 against the Revenue and in favour of the assessee." The said view was upheld by the Hon'ble Apex Court as reported in 2007 (1) TMI 556 - Supreme Court. 6.1 The Hon'ble High Court of Rajasthan in the case of M/s. Lav Kush Textiles (supra), following the decision in the case of Slovak India Trading Co. Pvt. Ltd. (supra) had held the issue in favour of the assessee. 6.2 In the case of Apex Drugs and Intermediates Ltd. (supra), the Hon'ble High Court of Andhra Pradesh observed as under:- "On a ....

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....missed by holding that the revenue did not file any appeal against many such orders passed by Tribunals at Delhi and Mumbai. The Tribunal at Delhi has passed one such order in the case of Eicher Tractors v. CCE, Hyderabad, 2002 (147) E.L.T. 457 (Tri.-Del.), whereas the Tribunal at Mumbai had passed three such orders, namely, Shree Prakash Textiles (Guj.) Ltd. v. CCE, Ahmedabad, 2004 (169) E.L.T. 162 (Tri.-Mumbai); CCE, Ahmedabad v. Babu Textile Industries, 2003 (158) E.L.T. 215 (Tri.-Mumbai); andCCE, Ahmedabad v. Arcoy Industries, 2004 (170) E.L.T. 507 (Tri.- Mumbai). The Tribunals in all the aforementioned cases have held that the assessee is entitled to refund in cash of the amount deposited if the assessee has gone out of the Modvat Sche....