𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗥𝗲𝗳𝘂𝗻𝗱 𝗼𝗳 𝗨𝗻𝘂𝘁𝗶𝗹𝗶𝘇𝗲𝗱 𝗖𝗲𝗻𝘃𝗮𝘁 𝗖𝗿𝗲𝗱𝗶𝘁 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Refund of unutilized Cenvat credit lying before GST implementation cannot be claimed in cash if TRAN-1 was not filed or if Rule 5 conditions are unmet."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Mahavir Metal Manufacturing Company 𝗜𝘀𝘀𝘂𝗲: Whether the appellant is entitled to a cash refund for unutilized Cenvat credit under Rule 5 or Section 140 of the CGST Act, 2017? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant, a manufacturer of umbrella parts, closed its factory in FY 2016-2017. In 2019, it filed a refund claim for unutilized Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2004, without transitioning the credit through TRAN-1 under GST.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that Rule 5 does not allow refunds for unutilized credit unless linked to exports. Cash refunds are barred under the Cenvat Credit Rules or Section 11B for non-duty-related credits. Without filing TRAN-1, credits cannot transition under GST. Late filing further invalidated the refund claim. Appeal dismissed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Mahavir Metal Manufacturing Company vs. Commissioner (Appeals), Central Excise and CGST 𝗘𝗫𝗖𝗜𝗦𝗘 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗢. 51200 OF 2022 (SM) 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 03 May 2023 📜 This ruling underscores that unutilized Cenvat credit from the pre-GST era cannot be refunded in cash without satisfying Rule 5 or TRAN-1 conditions.