CESTAT Denies Cash Refund for Unused Credit After Closure of manufacturing activities

Commissioner of Central Excise Vs Rani Plastic Pipe Industries (CESTAT Hyderabad) In a decision impacting businesses with accumulated tax credits upon closure, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad bench, has set aside an order that granted a cash refund of MODVAT/CENVAT credit to Rani Plastic Pipe Industries. The tribunal’s ruling, delivered on June 12, 2020, emphasized that under the prevailing law, cash refunds for unutilised credit are not permissible except in specific circumstances like exports, and the closure of a factory does not automaticall...