Company entitled to refund of Cenvat credit lying in Cenvat credit account on closure of business

Last updated: 26 July 2021
Quick Summary
A company that ceased manufacturing activities and surrendered its registration was entitled to a refund of unutilised Cenvat credit. Despite initial rejection due to a lack of supporting documents and perceived absence of provisions for such refunds, the CESTAT, New Delhi, ruled in favour of the company. This decision was based on precedent from the Karnataka High Court and the Supreme Court, establishing the right to a cash refund of Cenvat credit upon business closure, along with interest.

Court :
CESTAT, New Delhi

Brief :
In M/s Nichiplast India Pvt. Ltd. v. Principal Commissioner CGST [Excise Appeal No. 50790 of 2019 decided on July 23, 2021], M/s Nichiplast India Pvt. Ltd. ('the Appellant') closed down their manufacturing activities and surrendered their Registration Certificate on June 28, 2017.

Citation :
Excise Appeal No. 50790 of 2019 decided on July 23, 2021

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Bimal Jain
Published in Excise
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