Rule 5 of Cenvat Credit Rules – Refund of credit if it is not possible to utilize credit

Alkem Laboratories Ltd. Vs C.C.E. & S.T. (CESTAT Ahmedabad)

Rule 5 of the Cenvat Credit Rules prescribes that if for ‘Any reason’ the use of the said credit is not possible, the manufacturer or provider of the output service shall be allowed refund of such amount. The sole reason for denying the refund claim is the assertion that it was possible for the appellant to use the said credit. However in terms of the contract in the principal manufacturer it was not possible f

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