2018 (6) TMI 1664

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....ard and subsequently the said manufacturing unit was shifted to Sahipur, Banganagar. It is an admitted fact that the said unit has also been closed; meaning thereby the petitioner is not manufacturing Vanaspati Oil any more. The dispute arose because of a sizable amount of money lying under the CENVAT credit. The petitioner initially applied before the authority to utilise such credit at the alternative manufacturing unit. Subsequently, the petitioner approached for refund of the credit lying in its account, as there is no scope to adjust or utilise such credit from the future final product. A Writ petition was filed in the year 2000 before this Court for claiming the refund of the credit benefit in cash as the excise duty was subsequently ....

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....n filed by the petitioner was concerned, this Court found that the credit utilised by the petitioner from the second unit in respect of the self-same final product cannot be faulted with as the right to utilise the credit accrued to the asset and such right passed to the person, who owned such unit. It would be appropriate to quote the relevant excerpts from the said order, which runs thus: 14. Next question remains whether petitioners can get other mode of adjustment of the accumulated credit otherwise than provided in the Notification No. 45/89. In this context, it is necessary to reproduce the relevant portion of Notification No. 45/89. 1. The input, namely fixed vegetable oils of the description in column 2 of the tabl....

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....ranted to it in the said decision, which is reported in 2004 (176) E.L.T. 101 (Cal.). Now the problem takes a different shape and turn, as the petitioner discontinued the activities of manufacturing Vanaspati Oil in the aforesaid two units. As the petitioner cannot claim the refund of the credit in cash, having denied in an earlier writ petition, the relief is claimed that since they are manufacturing corrugated boxes and baby care products, which also attracts the excise duty, such credit may be allowed to be utilised against the said final product. It is submitted on behalf of the petitioner that since the right to claim is accrued to an asset and carries with the assessee, it is immaterial whether the raw material is actually utilised fo....

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....manufacture 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 validly taken, and its benefit is available to the manufacturer without any limitation in time or otherwise unless the manufactur....