Order date – 19 October 2022

 Facts –

• The Petitioner, M/s Green Valliey Industries Ltd. claimed cenvat credit of Rs.6,86,73,062/-
• The department dealt the entire amount as cenvat credit amounts to Rs. 6,55,99,159 and a credit of Rs.30,73,908/- that had been availed through TRAN-1. The Department submits, in particular, that the sum of Rs.30,73,908/- claimed by way of TRAN-1 was completely impermissible and there is no error in the adjudication in such regard.

 Issue – 

• Whether the impugned order rejecting the claim of Petitioner is in order? 

Order – 

• The Hon’ble High court finds that paragraph 3.5 of the show-cause notice of July 31, 2019 claimed that out of the total credit of Rs.6,86,73,064/- on account of the reverse charge mechanism availed by the assessee in its return of June, 2017, the admissible credit was Rs.30,73,908/-, which was the payment made by the assessee in June, 2017. Further, show-cause notice went on to reason that since the refund claim made by the assessee for the month of June, 2017 was to the extent of Rs.2,17,30,566/- and not the balance amount of Rs.30,73,908/- that was also available, in terms of the exemption notification No.20/2007 issued by the Central Excise authorities on April 25, 2007, the assessee was deemed to have abandoned such part of the claim. Indeed, the Department points out that the refund claim of Rs.2,17,30,566/- was honoured and the assessee has no grievance in such regard.
• It was observed that in terms of the exemption notification of April 25, 2007, the entirety of the credit available to an assessee ought to have been availed and the refund claim ought to have been restricted to the additional amount paid in cash, if excise duty was exempted. Thus, on a reading of the relevant notification, it would be apparent that no credit could be carried forward after making a refund claim as the entirety of the credit would have been adjusted in course of making the claim for refund.
• Further, as per the said Notification, if the assessee not availing of the entirety of the credit due to it on June 30, 2017, it will not be entitled to make a further claim in such regard and is deemed in law to have abandoned such available credit.
• Hence, as a consequence, the amount of Rs.30,73,908/- could no longer be carried forward in the TRAN-1 that was submitted at a subsequent stage.