Commr. of C. Ex. Vs. Himachal Wire Industries (P) Ltd. - Court Judgment

Excerpt:
1. heard both sides and perused the records. though the appeals are posted today only for consideration of stay applications, upon perusing the records and hearing both sides, it is seen that appeals themselves are required to be disposed of at this stage.2. the respondent is a manufacturer of galvanized iron wire. it made some supplies to world bank aided projects. such supplies are treated as deemed export, and as a result, no excise duty is required to be paid. since the respondents herein cleared the goods on payment of duty, it claimed as refund of the duty so paid. under the impugned order, the refund has been allowed.3. the present appeals of the revenue point out that refund should have been allowed in cenvat credit account and not in cash. the contention of the revenue has no merit. circular no. 220/54/96-cx dated 4-6-1996 of the board specifically advised payment in cash, even in the case of unutilized modvat credit relating to exports. the board's circular also specifically brings out the reason for advising cash refund. it is unfortunate that commissioners are filing appeals contrary to the circular of the board. higher authorities in the depart ment should take necessary steps to suppress such self-defeating appeals.4. in view of what is stated above, the appeals are rejected. since amounts due to the respondent are pending for quite sometime, it is directed that cash refunds may be paid within two weeks of the receipt of a copy of this order.

Judgment:
1. Heard both sides and perused the records. Though the appeals are posted today only for consideration of stay applications, upon perusing the records and hearing both sides, it is seen that appeals themselves are required to be disposed of at this stage.

2. The respondent is a manufacturer of Galvanized Iron Wire. It made some supplies to World Bank Aided Projects. Such supplies are treated as deemed export, and as a result, no excise duty is required to be paid. Since the respondents herein cleared the goods on payment of duty, it claimed as refund of the duty so paid. Under the impugned Order, the refund has been allowed.

3. The present appeals of the Revenue point out that refund should have been allowed in Cenvat Credit account and not in cash. The contention of the Revenue has no merit. Circular No. 220/54/96-CX dated 4-6-1996 of the Board specifically advised payment in cash, even in the case of unutilized Modvat credit relating to exports. The Board's Circular also specifically brings out the reason for advising cash refund. It is unfortunate that Commissioners are filing appeals contrary to the Circular of the Board. Higher authorities in the Depart ment should take necessary steps to suppress such self-defeating appeals.

4. In view of what is stated above, the appeals are rejected. Since amounts due to the respondent are pending for quite sometime, it is directed that cash refunds may be paid within two weeks of the receipt of a copy of this Order.