CENVAT CREDIT RULES, 2004

Rule 5

Cenvat credit - Refund of unutilized Cenvat credit - Allowability of -

Assessees were manufacturers of seamless casting pipes which they also export and availed benefit of CENVAT Credit under CENVAT Credit Rules, 2004. Rule 5 of CCR 2004 provides for refund of CENVAT Credit on inputs used for manufacture of final products which are exported, subject to procedures, safeguards, conditions and limitations as may be specified by the Board by notification in the official gazette. In terms of this notification and rule 5 of CCR 2004, assessee filed a refund claim for unutilised part of accumulated CENVAT Credit availed on inputs/input services used in the manufacturing of finished goods exported by them. Original authority sanctioned part amount of refund and rejected the remaining amount and Tribunal upheld the same. Held: Once it was decided by CESTAT that assessee was not entitled to refund of some amount of the CENVAT credit under rule 5 of the CCR, 2004, lower authority cannot sanction such refund as it would constitute judicial indiscipline. CESTAT was created under the Customs Act, 1962 and has been given powers under the Central Excise Act, 1944 and the Finance Act, 1994. Therefore, the powers of interpretation and application of these laws alone is the jurisdiction of the CESTAT. Assessee's claim for refund of disputed amount of CENVAT credit under rule 5 had already been rejected by this bench in their previous appeal. Therefore, they were not entitled to refund of CENVAT credit.

REFERRED : M/s. Castrol India Ltd. v. The Commissioner of G.S.T. & Central Excise, Chennai South Commissionerate [Appeal No.: E/40711/2013, dt. 13-3-2019 and Ms Great India Steel Fabricatros v. C.C.E. and S.T. Panchkula [APPEAL NO. E/60833, 60836/2018, dt. 14-2-2019.

FAVOUR : Against the assessee.

A.Y. :

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