Karnataka HC Allows CENVAT Credit Refund on business closure

Union of India Vs Slovak India Trading Company Private Limited (Karnataka High Court)

In a significant ruling, the Karnataka High Court has upheld a decision by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), allowing M/s. Slovak India Trading Company Private Limited to claim a refund of unutilized CENVAT credit despite ceasing manufacturing operations and surrendering its excise registration. The Union of India had challenged the CESTAT order, raising questions about the provision for refund under Rule 5 of the CENVAT Credit Rules 2002 when there is no ongoing pr

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