2026-VIL-960-CESTAT-CHD-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Finality of refund quantification, impermissibility of re-opening Cenvat credit deduction - Appellants, engaged in manufacture of cement in Himachal Pradesh, were granted exemption from central excise duty under Notification No. 50/2003-CE - Following the Hon'ble Supreme Court order holding appellants entitled to exemption under Notification No. 67/95-CE on captively consumed clinker, the original authority sanctioned refund after deducting Cenvat credit availed on inputs used in clinker manufacture. The refund amount attained finality as no appeal was filed by the Revenue against the quantum of refund. Subsequently, the Tribunal directed payment of the sanctioned refund instead of crediting it to consumer welfare fund - The lower authorities re-opened the quantification and increased the Cenvat credit deduction while implementing the Tribunal's order - Whether the revenue can re-quantify the refund amount and increase the deduction of Cenvat credit when the original refund quantum had attained finality and no appeal was filed by the department against the original quantification order. – HELD - Once the original authority has determined the refund quantum after due verification and the revenue has not appealed against such determination, that quantification attains finality and cannot be re-opened by the lower authorities while implementing a subsequent Tribunal order passed in appeal filed by the assessee on a different issue. If the revenue had doubts regarding the correctness of the refund quantification or the admissibility of Cenvat credit deducted, it was incumbent upon the department to file an appeal seeking re-quantification at that stage. Having allowed that opportunity to pass, the revenue cannot subsequently re-open the issue of quantification while implementing an order which was issued in consequence of the assessee's appeal against the crediting of refund to consumer welfare fund rather than payment to the assessee – Further, the Tribunal's direction to deduct Cenvat credit in the refund order was intended to restrict the assessee's claim and prevent double benefit not to confer a right on the Department to deduct the same amount again if already deducted in the original quantification – The findings of the appellate authority that the quantification had not attained finality were factually incorrect and legally untenable. The impugned orders are set aside. The refund amount as originally determined and sanctioned, after deducting the Cenvat credit already calculated and deducted therein, shall be paid to the appellants instead of being re-quantified – The appeal is allowed
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