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2019 (3) TMI 408 - AT - Central ExciseSuo moto credit of excess credit reversed - section 11B of CEA - Held that:- The fact is not under dispute that the appellant had inadvertently reversed the amount of 7% in the Cenvat account, instead of the prescribed amount of 6% of the value of exempted goods. The process of reversal of excess Cenvat credit and taking of re-credit of the said excess amount involve only accounting/book adjustment. There was practically no outflow of fund towards this accounting adjustment. Thus, the provisions of Section 11B of the Act for refund claim will not be applicable to the case in hand. The Hon’ble Madras High Court in the case of ICMC Corporation Ltd [2014 (1) TMI 1473 - MADRAS HIGH COURT] have held that process involving availment of suo motu Cenvat credit of the amount reversed earlier is a technical book adjustment and in absence of outflow of funds from assessee, filing of refund claim under Section 11B of the Act does not arise. Appeal allowed - decided in favor of appellant.
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