TaxTMI 
TaxTMI 
2026 (1) TMI 389
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....d to pass a speaking order; the appellants surrendered the registration on 10.10.2016; in remand proceedings, the original authority again rejected the refund claim vide order dated 02.07.2019 on the ground that there was no provision available for such refund; first appellate authority, vide impugned order dated 05.12.20019 upheld such rejection. Hence, the appeal. 2. Ms. Krati Singh, learned counsel for the appellants, submits that the appellant is entitled to receive the refund of unutilized credit on account of closure of the manufacturing unit, more so, as it is not disputed that the appellants have surrendered their registration; the appellants have claimed the refund as the CENVAT credit could not be utilized in any manner; clause-(c) to Proviso of Section 11B(2) of Central Excise Act, 1944 permits such refund subject to the only condition that the credit is availed in accordance with the Rule and Notifications issued thereunder. She submits that the issue is no longer res integra having been decided by the various Courts and Tribunals as follows: * Shree Krishna Paper Mills and Ind. Limited vs. Commissioner of Central Excise and St., Gurgaon 2018 (4) TMI 1155 CE....
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....submits that the appellant has filed refund claim on 07.10.2014 and accordingly, the appellants are eligible to get interest on the refund. 5. Learned Authorized Representative for the Revenue takes us through the provisions of law, under Central Excise Act, 1944; Rules 5, 18 & 19 of CENVAT Credit Rules, 2004 and Notification No.27/2012 dated 18.06.2012, as far as they relate to refunds and submits that there is no provision allowing refund of unutilized CENVAT credit on closure of the unit. He relies on Gauri Plasticulture (supra), Saera Electric Auto Pvt. Ltd. - 2020 (8) TMI 785- CESTAT Chandigarh, Phoenix Industries Pvt. Ltd. - 2015 (201) ELT 303, Purvi Fabrics & Texturise Pvt. Ltd. - 2004 (172) ELT 321 (Tri. Del.) and submits that the ratio of the above judgments has been followed by the Larger Bench in the case of Steel Strips - 2011 (269) ELT 257 (Tri. LB) and by Hyderabad Bench in the case of Cyient Ltd. - Final Order No.A/30291/2024 dated 25.04.2024 and Chennai Bench of the Tribunal in the case of M/s Alfred Berg & Co. (I) Pvt. Ltd. - 2023 (8) TMI 243- CESTAT Chennai. 6. Learned Authorized Representative submits that Hon'ble Supreme Court held in the case of Cosmo Fil....
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....014, on account of unutilized Cenvat credit, under Section 11B(2)(c) of the CEA,1944, whereas, as per, ER-I returns for the month of May,2015, the appellant utilized Cenvat credit for payment of duty of excisable goods and balance Cenvat credit was Rs. 3,07,80,005; the appellant filed last ER-I return in September,2016 and surrendered the Registration Number on 10.10.2016. He further submits that from these facts, it is clear that the refund application was filed on 07.10.2014, with a wrong declaration; the appellant, while seeking refund of unutilized Cenvat credit of Rs. 3.6 crores, have further utilized some credit, after filing of refund claim); at the end of May,2015, the appellant had Cenvat credit balance of Rs. 3,07,80,005; the appellant has mi-stated the facts and filed wrong claim and thus rightful rejected their claim and has not surrendered its registration on the date application for refund. 9. Authorised Representative submits further that the issue is not whether refund of accumulate and unutilized Cenvat credit is admissible on closure of the factory; the issue of admissibility of refund of unutilised credit has been decided in the favour of the revenue in variou....
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....es and Notification; Rule 5 of the Cenvat Credit Rules, 2004, prior to 01.04.2012, provided for refund of the Cenvat credit unutilized for any other reason; it was in that context, the Hon'ble High Court of Karnataka held in the case of Slovak India Trading Company Pvt Ltd (supra) that refund of the Cenvat credit is admissible under Rule 5 of the Cenvat Credit Rules, 2004 if the factory is closed; However, this rule has been amended w.e.f. 01.04.2012 and after the amendment there is no provision for refund of the Cenvat credit which has not been utilized at the time of closure of the factory. 12. We find that Section 11B (2)(c) of the CEA,1944 provides that refund of credit of duty paid on excisable goods used as inputs in accordance with the rules made, or any notification issued, under this Act. It means that refund of credit of duty paid on excisable goods is to be governed by the Rules made thereunder and Notifications issued in this Regard. The appellants contend that as the Cenvat Credit is taken correctly as per Rules made, they are eligible to claim refund of duty on closure of the factory as the same cannot be utilised. We find that Section 11B (2)(c) of the CEA,1944 ta....
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....ported without payment of service tax, shall be allowed refund of CENVAT credit as determined by the following formula subject to procedure, safeguards, conditions and limitations, as may be specified by the Board by notification in the Official Gazette: Refund amount= (Export turnover of goods+ Export turnover of services) Total turnover x Net CENVAT credit Where, - (A) "Refund amount" means the maximum refund that is admissible; (B) "Net CENVAT credit" means total CENVAT credit availed on inputs and input services by the manufacturer or the output service provider reduced by the amount reversed in terms of sub-rule (5C) of rule 3, during the relevant period; (C) "Export turnover of goods" means the value of final products and intermediate products cleared during the relevant period and exported without payment of Central Excise duty under bond or letter of undertaking; (D) "Export turnover of services" means the value of the export service calculated in the following manner, namely:- Export turnover of services = payments received during the relevant period for export services + export services whose provision has been complet....