2018 (7) TMI 908

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.... due to fire accident has been upheld thereby confirming the rejection of refund claim of Rs. 46,28,767/-. The facts relevant for the purpose are: 1. The Appellant is engaged in the manufacture of acrylic fibre falling under Chapter 55 of the Schedule 2 of the Central Excise Tariffs Act, 1985 since the year 2005 and has, accordingly, been registered. The duty paid raw material, mainly Acrylonitrile/input used be procured by the Appellant which was chargeable to duty at the rate of 16%. However, the finished goods were chargeable to the duty at the rate of 8%. In the year 2007, due to a fire accident in the Appellant's factory, their manufacturing activities stopped. Due to the aforesaid variation in the duty ranged, huge amount....

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....ter of undertaking, as the case may be, or used in the intermediate products cleared for export, the CENVAT credit in respect of the inputs so used shall be allowed to be utilized by the manufacturer towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason such adjustment is not possible, the manufacturer shall be allowed refund of such amount subject to such safeguards, conditions and limitations as may be specified by the Central Government 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 ....

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....as relied upon to hold that non-filing of appeal by revenue (as it was in Slovac India Trading Co. Pvt. Ltd. case) is not a bar for scrutiny in another case. It was also held as follows: "A distinction between provisions of statute which are of substantive character and are built in with certain 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 of the same is directory in nature. The doctrine of substantial compliance is a judicial invention, equitable in nature, designed ....