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2013 (1) TMI 585 - AT - Central ExciseRefund claim on wrong reversal of CENVAT Credit - rejection of refund invoking period of limitation - whether the claim for refund of wrongly reversed Cenvat Credit/Modvat Credit is subject to the limitation period prescribed under section 11B - Held that:- As decided in Indo-Nippon Chemicals Co. Ltd. Vs. Union of India reported [2002 (2) TMI 136 - HIGH COURT OF GUJARAT AT AHMEDABAD]that refund/re-credit of Cenvat Credit wrongly reversed, would be subject to the provisions of Section 11B, as Modvat/Cenvat Credit is nothing but a constituent of duty. In view of this, the refund/re-credit of the wrongly reversed Cenvat Credit would be subject to the provisions of Section 11B and the limitation period prescribed in Section 11B would be applicable for filing the refund claim for Modvat Credit. Relevant date from which the limitation period has to be counted - Held that:- Hon'ble High Court in the case of Indo-Nippon Chemicals Co. Ltd.(Supra) has held that when reversal of Modvat Credit was on insistence of Department and subsequently the reversal was found to be wrong, the provisions of Section 17 of Limitation Act would be applicable and limitation period would run from the date on which the mistake was discovered by the appellant. Ascertainment as to whether the reversal was on the insistence or instructions of the Departmental Officers - Held that:- On this point there is dispute, as while the Department claims that the reversal in both the cases had been made by the appellant on their own without any instructions in this regard to them, Contrary to this, the appellant in their reply dtd. 02.09.01 to the Show Cause Notice have made the submissions that reversal of credit was done without any protest but on the context of wrong interpretation of rule by departmental officers advising reversal of such credit. The learned DR had been asked file his written submissions on this point but the same have not been filed in view of this, the matter has to be remanded once again to the Commissioner (Appeals) and ascertain as to whether the reversal was on advice or instructions of the Departmental Officers or made by the appellant on their own, as per their own interpretation of rules without any advice or any instructions.
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