TMI Blog2004 (8) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... ous cast copper rods etc. and avail credit of duty paid on inputs. During the course of manufacture, fully duty exempted gold bars and silver bars also emerge. They reverse 8% amount equivalent to the sale value of such exempted goods as required by Rule 57AD of the Central Excise Rules, 1944 and Rule 6 of the Cenvat Credit Rules, 2002. 2.Such reversals are effected by debit entry in the PLA. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not utilised, as per the direction of the Superintendent, dated 23-7-2002 and correspondence was exchanged with the department and finally they represented to the Commissioner the intent to utilise the credit of Rs. 1.584 crores. They were served a notice dated 12-3-2003 proposing to recover this credit on the grounds - (i) Credit can be availed in PLA only of amounts paid by TR-6 chall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it made on 20-2-2001 and corrections effected thereafter. Such order travelling beyond the notice is to be held bad in law, following the judgments of the Supreme Court in Reckit Colman of India Ltd. v. CCE [1996 (88) E.L.T. 641 (S.C.)] and Prince Khadi Woollen Handloom v. CCE [1996 (88) E.L.T. 637 (S.C.)], and order is required to be set aside only on this ground. (b) It is well settle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 226 of the Central Excise Rules, 1944. Correcting an error detected, suo motu or otherwise in the PLA, is an exercise in Account maintenance in true and correct form. Under Rule 226(ii), the assessee was required to intimate the department about the clerical corrections before 24-3-2002; they have done so only on 24-3-2002. That there was no clerical incorrect calculation and error in the debits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Such entry cannot be denied on the grounds that only TR-6 challan amounts could be credit entries which could be made in the PLA, as made out in the notice. The notice appears to be issued in ignorance of the instructions on maintenance of PLAs and Book Keeping Practices accepted all over the world. (e) No reasons are found to uphold the penalty of Rs. 5,000/- as arrived by the adjudica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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