The Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ), Delhi bench recently ordered the refund of pre-deposited cenvat credit in cash to the owner of now-defunct manufacturing industry.
The appellant M/s Ashutosh Metal Industries, involved in the manufacture and clearance of copper ingots and rods, falling under chapter 74 of the first schedule of Central Excise Act, 1985 were brought under the preview of investigation due to alleged clandestine removal goods. After going through a series of show cause proceedings and investigations, the appellant was ordered to make a pre-deposit amount of rs. 1.5 crores and report compliance. Though later the appellant applied for the refund, it was restored into the cenvat account only.
Judicial Member S.K. Mohanty, while disposing off the appeal in favor of the appellant said, “Since the appellant had lawfully earned the Cenvat credit and due to closure of the factory, is not in a position to utilise the same now, such pre-deposited amount, in my considered view, should be refunded to it in cash. . .”
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