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2020 (1) TMI 485 - AT - Central ExciseRecovery / Forfeiture of amount deposited in the Escrow account instead of refund - Amount was paid by utilizing the credit and challan - HELD THAT:- The issue with regard to demand arising consequent to denial of exemption benefit is not in dispute. In fact, the assessee appellant has already made the duty payment. The Ld. Commissioner has duly noted the fact that said payment of duty has been affected both by challan payment and CENVAT Credit utilization. However, he rejected the appeal with the observation that credit cannot be further allowed, which in our view is clearly erroneous inasmuch as the assessee has sought relief for the amount which has been paid twice. The Ld. Commissioner was not required to re-decide the credit eligibility in the impugned order. The Ld. Commissioner, instead of arriving at the conclusion that credit cannot be further allowed, which was never before him, ought to have appreciated the fact of payment of amount by challan as well as by credit utilization has been made by the appellant - Since the benefit of exemption has been denied and the assessee has duly made the payment by utilization of credit as also accepted by the department, the payment of amount by challan has to be at best considered as ‘deposit’ which cannot be retained by the department and is liable to be refunded back. Appeal allowed - decided in favor of appellant.
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