TaxTMI 
TaxTMI 
2004 (7) TMI 131
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....nt textile processors engaged in processing grey fabrics received from their customers which include M/s. Rajasthan Spinning & Weaving Mills Ltd. (in short RSWM); that the Revenue contended that since the Appellants and RSWM are related persons, the price at which RSWM sell the goods should form the basis of assessment of Central Excise duty; that on appeal filed by them the Appellate Tribunal vide Final Order No. 134-143/2001-A dated 4-4-2001 [2001 (131) E.L.T. 594 (T)] set aside the order and held that the Appellants and RSWM were not related persons, and therefore, they are liable to pay excise duty based on principles laid down by the Supreme Court in Ujagar Prints case; that during the interim period in view of insistence and direction....
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....he Central Excise Act entire duty whether deposited in cash or by utilizing Modvat credit has to be refunded without going into how much quantum of duty has been deposited in cash or through utilisation of credit; that Section 11B does not envisage that the refund of duty paid by utilisation of credit has to be granted by allowing the credit in the credit account; that it has been held by the Tribunal in the case of National Organic Chemicals Industries Limited v. CCE, Bombay-III, 1994 (70) E.L.T. 722 (T) that "set off can be claimed by way of cash refund also"; that the appeal filed by the Revenue against the said decision has been dismissed by the Supreme Court as reported in 1996 (84) E.L.T. A106. He also mentioned that the factory of th....
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....the same has been sanctioned to them in January, 2003 and January, 2004; that the interest was not considered by the lower authorities which is available to them under the Act. 3. Countering the arguments Mrs. Charul Baranwal, learned SDR, submitted that there are no provisions in Modvat Rules for the refund of Modvat Credit in cash; that the Modvat Credit under the Rules is to be utilised only for payment of any duty of excise on any final product manufactured by the manufacturer or for payment of duty on inputs or capital goods themselves, if such inputs are removed as such or after being partially processed or such capital goods are removed as such; that the refund of Modvat credit in cash is only permissible when the inputs are used ....
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....he also relied upon the decision in the case of T.I. Cycles of India v. CCE, Madras, 1997 (93) E.L.T. 126 (Tribunal) wherein the Tribunal has held that refund of duty amount paid by debit to RG 23 account is to be credited to RG account only and is not to be paid in cash or by cheque. 4. We have considered the submissions of both the sides. Central Excise Rules, 1944 earlier and now CENVAT Credit Rules provided for the credit of the duty paid on the inputs used in or in relation to the manufacture of the final product and duty paid on the capital goods. These rules provide that the Modvat Credit of the duty so availed is to be used towards payment of duty on any of the finished goods manufactured by the manufacturer or on the inputs/capi....