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2022 (12) TMI 1189 - AT - Central ExciseRefund claim of the amount of pre- deposit under section 11 B read with section 35 F of the Central Excise Act 1944, instead of availing credit suomoto under Cenvat Credit Rules, 2004 - HELD THAT:- The appellant have suo-moto re-credited an amount of Rs 3,75,000/- for which the appellant had given the bank guarantee at the time of provisional release of the seized goods. This amount was subsequently appropriated against confiscation of the seized goods ordered by the Assistant Commissioner vide OIO dated 30.09.2005 therefore, the amount of bank guarantee has been converted to redemption fine against the confiscation of the goods. On succeeding in the appeal before the Tribunal the appellant was supposed to file a refund claim for refund of the amount of redemption fine. Whereas the appellant have taken the suo-moto re-credit as cenvat credit. As per the cenvat credit rules, an assessee can take the cenvat credit of any duty paid on the inputs used in the manufacture of final product cleared on payment of duty - In the present case the amount of redemption fine is not eligible as cenvat credit as the same is not a duty which was paid on any input received by the appellant. The right course of action about refund of the amount of bank guarantee adjusted against the redemption fine is to file a formal refund claim. The appellant is otherwise eligible to claim the refund of Rs 3,75,000/- from the department in terms of section 11 B of the Central Excise Act,1944. Since the appellant have followed the wrong procedure by re-crediting the amount of cenvat credit but otherwise the appellant is prima facie eligible for refund, The period involved in the present proceeding right from taking re-credit till the filing of refund claim is reduced for the purpose of limitation as prescribed under section11 B. The appellant has liberty to file a formal refund claim under section 11 B within three months from the date of this order. Appeal disposed off.
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