Date of Order: 27 October 2022

Facts: 

• The appellant, M/s Hindoostan Mils Ltd. is engaged with, the manufacturing of excisable goods namely, grey cotton fabrics and grey man-made fabrics of filament yarn and staple yarn which are falling under Chapter Heading No. 52,53,54,55 & 58 of the Schedule to the Central Excise Tariff Act, 1985.
• The factory of the appellant was closed down and there was no occasion or scope to utilize such accumulated Cenvat Credit and hence the appellant filed refund application before the jurisdictional Central Excise claiming refund of Cenvat Credit lying unutilized in the books of account.
• The adjudicating authority sanctioned refund amount of Rs.35,23,640/- in favor of the appellant. However, instead of crediting the said amount into the appellant’s books of accounts, the said order has appropriated such amount against the outstanding Government dues.
• Aggrieved, this appeal is filed.

Issue:

• Whether the appellant is entitled to claim a refund of Cenvat Credit lying unutilized in the books of account.

Order: 

• The authorities find that that against the outstanding demand of Rs.51,86,838/- confirmed as interest liability, the refund amount sanctioned by the Department was appropriated against such liability.
• The authorities also find that the interest demands have already been settled under the SVLDRS-4, 2019, and consequent upon settlement of the dispute, the appeal filed by the appellant before the Tribunal was also dismissed as deemed withdrawal.
• The authorities observed SVLDRS-4 submitted by the appellant, the department has confirmed that the outstanding liability has already been settled under such scheme.
• There is no question of any appropriation of the sanctioned refund amount against any liability as mentioned in the adjudication order dated 03.11.2017.
• The appellant is allowed, with the direction that the appellant should be entitled for a grant of refund for an amount of Rs.35,23,640/-.
• The appeal is allowed.