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WANLURA DIENGDOH, SANJIB BANERJEE
Adhunik Meghalaya Steels Private Limited – Appellant
Versus
Union of India – Respondent
JUDGMENT
Sanjib Banerjee, CJ. - In view of the order proposed to be made, the facts need not be noticed in any greater detail since the issues involved are primarily legal.
2. The essential facts have been recorded in the previous order of February 15, 2022, though the parties were left free to urge all grounds.
3. The appellant-assessee procured an Arc Furnace as capital goods for the purpose of its manufacturing unit that produces ferro silicate components which attract excise duty. However, by reason of the location of the manufacturing unit, the assessee is entitled to refund of the excise duty to the extent paid. The appellant was also entitled to obtain Cenvat credit for acquisition of capital goods used in its process of manufacture. However, in terms of Rule 3(5) of the Cenvat Credit Rules, 2004, as such Rule stood at the relevant time, when any capital goods had been acquired and Cenvat credit obtained, if such capital goods were subsequently to be sold or transferred, the Cenvat credit had to be refunded.
4. Under the practice that was followed for the assessee to obtain the refund of the excise duty paid, it would first adjust the quantum of excise duty payable against any C
The main legal point established in the judgment is the interpretation and application of Rule 3(5) of the Cenvat Credit Rules, 2004, and its amendment in 2007, particularly regarding the refund of C....
The central legal point established in the judgment is that there is no requirement to claim CENVAT credit only in the year of procurement, and the credit can be availed in subsequent financial years....
The court established that proper reversal of Cenvat credit negates the demand for additional payments under Rule 6(3) of the Cenvat Credit Rules.
Refund of unutilized CENVAT credit due to closure is not permitted under Section 11B(2)(c) post 01.04.2012 amendments.
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