Order Date – 28 February 2024

Parties: Arcelor Mittal Nippon Steel India Limited Vs C.C.E. & S.T.-Surat-I

Facts –

• The Appellant, Arcelor Mittal Nippon Steel India Limited, made a refund claim under Rule 5 of Cenvat Credit Rules, 2004 for the period April-2011 to June -2011 was rejected on the ground that the refund amount is out of the cenvat credit which was transferred from Hazira Pipe Mill Ltd and Hazira Plate Ltd on account of amalgamation and merger and the said credit was not attributed to the input used in the manufacture of exported goods.

Issue –

• Whether refund of unutilized cenvat credit accumulated is available on account of amalgamation and merger with SEZ unit?

Order –

• The Tribunal observed that from the chart presented by the appellant it prima facie shows that the refund claim for the period April 2011 to June, 2011 appears to be the amount out of the fresh credit availed after the utilization of transferred credit. However, the details given in the chart along with documents were not verified by both the lower authorities.
• As regard the claim of interest firstly the same is consequential to the eligibility of refund in the facts of the present case. Secondly, the claim of interest also needs to be considered independently, therefore, the entire matter needs to be remitted back to the original adjudicating authority.
• Appeal is allowed by way of remand to the Adjudicating Authority.