Page 147 - ELT_15th August 2020_Vol 373_Part 4

2020 ] SURETEX PROPHYLACTICS INDIA PVT. LTD. v. C.C.E., CUS. & S.T., BANGALORE 481

2020 (373) E.L.T. 481 (Kar.)
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
Aravind Kumar and E.S. Indiresh, JJ.
SURETEX PROPHYLACTICS INDIA PVT. LTD.
Versus
C.C.E., CUS. & S.T., BANGALORE
COMMR. OF C. EX., CUS. & S.T., BANGALORE
C.C.E., CUS. & S.T., BANGALORE
2
C.E.A. Nos. 31-33 of 2017 , 25 of 2018 & 35 of 2018 , decided on 5-5-2020
1
3
Refund of Cenvat credit - Limitation - Rule 5 of Cenvat Credit Rules,
2004 clearly stating that refund claims subject to “such safeguards, conditions
and limitations as may be specified, by the Central Government, by notifica-
tion” - Notification Nos. 5/2006-C.E. (N.T.), 27/2012-C.E. (N.T.) and 14/2016-C.E.
(N.T.) issued by Central Government in exercise of powers conferred under
Rule 5 ibid providing that application to be made before expiry of period spec-
ified in Section 11B of Central Excise Act, 1944 - In respect of refund of claims
made under Rule 5 ibid including refund claims relating to service providers
under Finance Act, 1994, provision of Section 11B ibid squarely applicable -
Section 11B of Central Excise Act, 1944 applicable even to claim of refund of
unutilised Cenvat credit. - In terms of Rule 5 of Cenvat Credit Rules, 2004 where any
input for input service is used in the manufacture of final product which is cleared for
export under Bond or letter of undertaking, the Cenvat credit in respect of the same, so
used shall be allowed to be utilized by the manufacturer or provider of output service so
used and shall be allowed to be utilized by the manufacturer or provider of output service
and if for any reason, such adjustment is not possible, the manufacturer or the provider of
output service would be entitled to seek refund of such amount subject to such safe-
guards, conditions and limitations as may be specified by the Central Government by
notification. To put it differently, in terms of Rule 5 of Cenvat Credit Rules, 2004 when a
manufacturer is exporting the final product continuously without payment of duty, the
Cenvat Credit on inputs-input services would be accumulating to his Cenvat credit rec-
ords. Such manufacturer would be entitled to utilize the Cenvat credit either for payment
of Excise duty on final products cleared for home consumption or for export on payment
of duty or for payment of Service Tax on output service. If these contingencies are not
forthcoming for any reason, then manufacturer/output service provider can seek refund
as provided under Rule 5 ibid read with relevant or extant notifications so issued. [paras
10, 11, 12]
Refund of unutilised Cenvat credit - Limitation - Relevant date - Time-
limit to be computed from last date of last month of quarter which would be
relevant date for purposes of examining if claim is filed within limitation pre-
scribed under Section 11B of Central Excise Act, 1944 - In other words, relevant
date for computation of time-limit will be the end of the quarter” in which
FIRC’s are received as per the extant Notification No. 27/2012-C.E. (N.T.) - 12
claims filed on 3-1-2014 being beyond one year from last date of last month of

________________________________________________________________________
1 On appeal from Final Order Nos. 21356-21358/2016, dated 2-12-2016 by CESTAT, Bangalore.
2 On appeal from Final Order No. 22460/2017, dated 31-7-2017 by CESTAT, Bangalore.
3 On appeal from Final Order Nos. 20374-20385/2018, dated 8-3-2018 by CESTAT, Bangalore.
EXCISE LAW TIMES  15th August 2020  147