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2018 (10) TMI 696

004 - Held that:- It is clear that the appellants had adjusted higher amount from the CENVAT credit amount towards discharging duty liability for the months of July and November 2012. Later, realizing the mistake, they had taken suo moto credit of the excess CENVAT amount debited by them. - The department has denied the suo moto credit alleging that there are no proper documents for availing the credit for the second time - this allegation by the department is erroneous for the reason that for the second time, the appellants have taken the credit only because they had made a wrong book entry at the initial stage. This does not amount to availing credit for second time. - The Hon’ble Karnataka High Court in the case of Motorola India .....

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ove allegations and proposing to recover the wrongly availed credit to the tune of ₹ 11,48,094/- along with interest and also proposing to impose penalties. After due process of law, the original authority confirmed the demand, interest and penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Ms. Krithika Jaganathan submitted that the appellant has been regularly discharging the excise duty at applicable rates and also filing returns for the same. During the months of July 2012 and November 2012, the appellant inadvertently mentioned higher amount of ₹ 11,84,033/- as CENVAT credit utilizing for paying excise duty and disclosing in their ER-1 returns, though t .....

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se - 2008 (229) ELT 364 (Tri. LB). That the said Larger Bench decision was per incuriam as the Hon ble Karnataka High Court by an earlier decision in the case of Motorola India Pvt. Ltd. - 2006 (206) ELT 90 (Kar.) had already held that the mistake in excess duty by adjusting in CENVAT credit can be corrected by suo moto credit by the assessee. She also relied upon the decision of the jurisdictional High Court in the case of ICMC Corporation Ltd. Vs. Commissioner of Central Excise - 2014 (302) ELT 45 (Mad.) and argued that suo moto credit involves only an account entry reversal and there being no outflow of funds, it is not required to file refund claim. 3. The ld. AR Shri R.Subramaniam supported the findings in the impugned order. He submit .....

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f debiting the amount in the CENVAT credit can be corrected by the assessee later. Further, the jurisdictional High court in the case of ICMC Corporation Ltd. (supra) had occasion to analyse the very same and has held as under:- 13. We do not subscribe to the view expressed by the Revenue. Admittedly, the assessee originally availed the Cenvat credit on Service Tax for discharging its liability. However, for sound reasons, it reversed the credit. Strictly speaking, in this process, there is only an account entry reversal and factually there is no outflow of funds from the assessee to result in filing application under Section 11B of the Central Excise Act, 1944 claiming refund of duty. The contention of the Revenue that even in reversal of .....

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