2018 (12) TMI 1176

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....Department for manufacturing of Rectified Spirit/Denatured Spirit and Fusel Oil; availed facility of CENVAT credit on inputs and capital goods; during the time the factory was not running and the appellant utilised CENVAT credit for discharge of Central Excise Duty and an amount equivalent to 8% or 10% of the value of the exempted goods, the factory was under closure and the respondent surrendered the registration to the department and filed a refund claim seeking refund of an amount lying in CENVAT credit taken on inputs. On the date of surrendering of the registration, an amount of Rs. 1,03,19,444/- shown as unutilised CENVAT credit. The adjudicating authority, after following due process of law, rejected the contention and also the refun....

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....harmaceuticals Limited vs. CCE, Jaipur [2018(15) G.S.T.L. 257 (Raj.)] which reiterates the law as profounded by Slovak India Trading Company Pvt. Limited and upheld by Hon'ble Apex Court. He produces copies of the judgment. 6. On careful consideration of the submissions made, we find that there is no dispute as to the fact that respondent availed CENVAT credit facility on inputs and capital goods, utilised the same for payment of duty on clearance of dutiable goods and also making debits on clearance of exempted goods. It is also undisputed that the respondent had surrendered the registration to the Department and subsequently filed refund claim for unutilised CENVAT credit. 7. We find that identical issue came up before Hon'ble High ....

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....e's case (supra) by the Supreme Court, which reads as under : 17. It is clear from these Rules, as we read them, that a manufacturer obtains credit for the excise duty paid on raw material to be used by him in the production of an excisable product immediately it makes the requisite declaration and obtains an acknowledgement thereof. It is entitled to use the credit at any time thereafter when making payment of excise duty on the excisable product. There is no provision in the Rules which provides for a reversal of the credit by the excise authorities except where it has been illegally or irregularly taken, in which event it stands cancelled or, if utilised, has to be paid for. We are here really concerned with credit that has been valid....