2005 (12) TMI 131

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....ailed Modvat credit of Rs. 2,53,551/- on capital goods (imported by them) on the strength of Bill of Entry dated 30-11-1994. The original authority disallowed the credit to the party. The first appellate authority set aside the order of the lower authority and allowed the credit to the assessee. Pursuant to the order passed by the Commissioner (Appeals), the jurisdictional Deputy Commissioner allo....

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....edit on account of having moved out of the Modvat scheme and not on account of having closed down their unit. It is also submitted that the CBEC has permitted cash refund only in the case of export rebate. Reference has also been made to sub-rule 3 of the erstwhile Rule 57S of the Central Excise Rules, 1944 and it has been stated that the said provision prohibited refund, in cash or by cheque, of ....

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....is eligible for cash refund of the duty amount in the circumstances of this case. In the case of Babu Textile Industries (supra), the departmental authorities had denied cash refund of an amount of duty but allowed the party to take credit of such amount in their Modvat account. The Tribunal noted that the party was not in a position to avail such credit on account of their being a SSI unit availi....