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2017 (12) TMI 1661 - ALLAHABAD HIGH COURTRecovery of CENVAT credit wrongly taken or erroneously refunded - Rule 14 of the CENVAT Credit Rules, 2004/section 73 of the Finance Act, 1994 - Held that:- One of the stipulations in the said Rules is that a recovery of CENVAT credit may be made from the manufacturer if it had wrongly been taken and utilized or had been erroneously refunded to him. The Rules, therefore, contemplate that if such a situation arises, a notice to that effect must be given to the assessee for recovery. In the absence of such a notice for recovery, as is contemplated under Rules 14 of the Rules, any action taken or order passed to reject refund claimed would become bad. The Tribunal has come to the conclusion that in the present case compliance of the Rule 14 had not been made. There is no challenge to the correctness of that finding of the Tribunal. Also, it is seen that the total amount of refund claimed is only about ₹ 2.5 lacs. The order of the Tribunal is affirmed - The questions of law is answered in favour of the assessee and against the revenue.
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