2019 (2) TMI 685

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....that the appellants are not eligible for the refund claim since, according to the Asst. Commissioner, as per Rule 5 of Cenvat Credit Rules, 2004 read with Section 11B of Central Excise Act, 1944, a refund of unutilized cenvat credit could be allowed only when the cenvat credit was related to services used for the export of services. A Show cause notice dated 21.11.2017 was thus issued proposing rejection of refund claim as they are not eligible for the refund of balance lying unutilized in their cenvat account at the time of closure of business. The appellant vide reply dated 03.01.2018 to the SCN replied that the refund claim was made because they had wound up their business and dissolved their partnership firm on 02.11.2016; had surrender....

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....the adjudicating authority. Hence, this appeal. 2. Ld. Counsel, Shri P. Ravindran, appeared for the assessee and submitted that such refund claim has been allowed by a catena of judicial pronouncements and such case laws on which reliance was placed were produced before both the lower authorities. The adjudicating authority had mis-construed the claim of the appellants as a claim for refund of the debit of tax made in cash whereas, the appellants had only claimed refund of unutilized cenvat credit lying in balance consequent to closure of their business. He submitted that both the authorities have failed to consider the dictum laid down in those judicial pronouncements where judgment in Slovak India Trading Co. Pvt. Ltd. (supra) was foll....

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....y 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 under the Central Excise Rules, 2002, in respect of such duty." 4.2 Rule 5 of Cenvat Credit Rules, 2004 facilitates refund of credit, to be worked out in the manner provided in the formula prescribed, under sub-rule (1). The formula reads as under: Refund Amount = (Export turnover of Goods + Export ---------------------- Turnover of services) Total turnover x Net Cenvat credit The term "Total turnover" used in the above formula includes the sum total value of all excisable goods cleared during the rel....