JUDGMENT
Jyoti Balasundaram, Member (J)
1. The department seeks stay of operation of the impugned order of the
Commissioners (Appeals) Rajkot who has allowed the claim of the
respondents for refund of duty paid on electric transformers holding that the
claim was not time barred and further holding that the doctrine of unjust
enrichment does not apply to cases covering Modvat Credit. The ground
urged in the application is that the department has filed appeal before the
Tribunal against the grant of Modvat Credit on Electric Transformers and
the appeal is pending before the tribunal and therefore unless the stay of
operation of the present impugned order is granted to the department, even
in the event of success of the appeal (SIC) will only have a paper victory.
2. I note that the question of eligibility of Modvat Credit on Electric
Transformers has been the subject matter of the Tribunal Larger Bench
decision in the case of Jawahar Mills v. C.C.E. Coimbatore and this
decision has been upheld by the Supreme Court. Therefore no satisfactory
ground has been made out by the Revenue for granting stay of operation of
the impugned order. Accordingly I reject the stay application.
(Pronounced in Court)