TMI Blog2023 (1) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. CES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.3 During their subsequent Audit during Financial Year 2008-2009, the Auditors vide Audit Memo dated 19.01.2010, pointed out that the payment of service tax of Rs.9,85,086/- made on 30.03.2009 by debit to Cenvat Account was irregular and directed the Appellant to pay the said amount of Rs.9,85,086/- from current account with interest. The Appellant accordingly paid Rs.9,85,086/- from its Current Account on 08.03.2010. While informing the jurisdictional Range Officer about the payment of Rs.9,85,086/- from Current Account, the Appellant informed that they will reverse the utilization of input service credit in March, 2010, which was originally adjusted in March, 2009 ST-3 Return after payment being made. Accordingly, credit entry for Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, 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. It is my considered view that 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit Rules, 2004. as there is no dispute of the fact that a sum of Rs. 3,21,308/- available as Cenvat credit was in respect of input services, which are given under Rule 6(5) of the Cenvat Credit Rules, 2004. When that being the case, in respect of those services specifically mentioned under Rule 6(5) of the Cenvat Credit Rules, 2004 as it existed during the relevant period viz., 2004-2006 getting the reversal of the entry is in tune with its stand taken, which was accepted by the Tribunal in the earlier round of litigation. 14 . We do not find any good ground to hold that it was a case of refund of duly falling under Section 11B of the Central Excise Act, 1944 and that the assessee was to comply with the provisions of Section 11B o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H Industries Ltd. Vs. Commissioner of Central Excise (Appeals), Mumbai I reported in 2008 (229) ELT 364 (Tri.-LB). I find that the decision of the Larger Bench of the Tribunal is dated 09.07.2008, whereas the decision of the Hon ble High Court of Madras was delivered on 03.01.2014 i.e. much after the decision of the Larger Bench of the Tribunal. 7. I find that the facts of the present case are squarely covered by the aforesaid decision of the Hon ble High Court of Madras. Accordingly, by following the judicial discipline and by respectfully following the ratio of the judgement of the Hon ble High Court of Madras, I hold that the impugned orders cannot be sustained and the same are set aside. 8. As a result, the appeal filed by the App ..... X X X X Extracts X X X X X X X X Extracts X X X X
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