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2017 (2) TMI 102 - AT - Central ExciseRe-credit of duty from cenvat account - Rule 8 (3A) of Central Excise Rules, 2002 - requirement of payment of duty in cash during default period - the duty was paid twice from cenvat credit and second time from PLA on insistance of the department - Held that: - the appellant have not taken suo moto credit on their own but they made number of request by writing letter to the department regarding re-credit of amount in the cenvat account but the department instead of deciding the re-credit they have issued show cause notice and denied the re-credit which is absolutely illegal and incorrect. Even if it is accepted that refund claim should have been filed, when the appellant have made request in writing for re-credit in the cenvat account, the same can be disposed of considering the refund claim of the appellant but instead of disposing request of re-credit both the lower authority has passed orders for recovery of the re-credit amount which is not legal and proper - re-credit of the amount by the appellant is correct and the same cannot be recovered. Unjust enrichment - Held that: - the duty was paid twice on the same clearances however the duty passed on is only one time duty paid on the clearances, therefore the unjust enrichment does not apply. Moreover, the amount paid from Cenvat account has not been considered by the department as excise duty that is a reason they asked to pay in cash, which was complied by the appellant - no issue of unjust enrichment arises. The appellant has correctly re-credited the cenvat amount, therefore the impugned order is set aside - appeal allowed - decided in favor of appellant.
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