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2023 (1) TMI 802 - AT - Central ExciseRefund of Cenvat Credit vs Re-Credit of Cenvat Credit - Scope of SCN - Show-cause notice sought to question the suo motu reversal entry dated 31.03.2010 inasmuch as the Appellant should have sought for refund thereof under Section 11B of the Act - It is case of the Appellant that the Order-in- Original has travelled all the way beyond the Show-cause notice - HELD THAT:- The Appellant had discharged the duty burden from their PLA Account and as such, there is no dispute about the same. With such payment of duty out of PLA, they have reversed the debit entry made by them in their Credit Account which was used for payment of duty earlier. Though there was no proposal in the Showcause notice to deny such re-credit, the original Adjudicating Authority went ahead and even after accepting that the duty was paid subsequently in cash, disallowed the re-credit and confirmed the duty to that extent. Once the duty has been paid in cash, earlier payments made through Cenvat Account are liable to be re-credited in the said Account and no objection that such recredit was not on the basis of any eligible document can be adopted by the Revenue. Admittedly, it is not a case of availment of credit in the ordinary course, but such re-credit was to neutralize the subsequent payment of duty in cash. Reliance placed in the case of ICMC Corporation Limited vs. CESTAT, Chennai [2014 (1) TMI 1473 - MADRAS HIGH COURT], whereby the Hon’ble High Court held that the suo motu credit of Cenvat reversed earlier involved only an account entry reversal and in the process, no outflow of funds from the assesse and accordingly, filing of refund claim under Section 11B of the Central Excise Act, 1944, is not required. The impugned orders cannot be sustained and the same are set aside - Appeal allowed.
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