STANDARD BATTERIES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellant is in appeal against the impugned order for denying the sanctioned refund amount paying by cash. Brief facts of the case are that the appellant is the manufacturer of batteries which they were exporting outside India. In one of the clearance, the foreign buyer has cancelled the order and the same was supplied to the Indian Navy. As supply to the Indian Navy is exempted from excise duty therefore, before clearing the goods, the appellant reversed the input credit availed pertaining to the said clearance. The Revenue was of the view that as the appellant was not maintaining a separate account for their exempted as well as dutiable final products therefore, they are required to reverse 8% of the value of the exempted goods. During the course of investigation, the appellant paid a sum of Rs. 2,00,000/ - and Rs. 11,32,694.69 through Cenvat credit account. Later on, the matter travelled up to this Tribunal and this Tribunal held that as the appellant has already reversed the input credit pertaining to the clearance to the Indian Navy therefore, they are not required to pay 8% of the value of the exempted goods. In these circumstances, a refund of Rs. 11,32,694.69 was to be given to the appellant. Accordingly, the appellant filed a refund claim. The adjudicating authority has sanctioned a sum of Rs. 2,00,000/ - in cash and the remaining amount he held that the said amount will be credited in Cenvat account. Aggrieved by the same, the appellant is in appeal before this Tribunal.

(2.) HEARD both sides.

(3.) ON the other hand, the learned AR submits that as they have reversed the amount from their CENVAT credit account therefore, the amount can be refunded to the CENVAT credit