Modvat credit re-credit is allowed without a refund claim where earlier reversal was wrongful and credit remained admissible.

Reversal of Modvat credit under Rule 57CC is not treated as payment of duty through Modvat credit, so the refund mechanism under Section 11B does not apply. Where the credit was otherwise admissible and was reversed in error, the assessee may restore the credit by taking re-credit on its own, without filing a refund claim. The Tribunal distinguished the Revenue's cited authorities as inapplicable on the facts and accepted that the earlier wrongful reversal could be corrected through re-credit.

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Issues: Whether the assessee was entitled to take re-credit of the amount earlier reversed under the excise credit scheme without filing a refund claim under Section 11B.

Analysis: The dispute turned on whether the earlier reversal of credit constituted payment of duty through Modvat credit, so as to attract the refund mechanism under Section 11B. The Tribunal distinguished the cases relied upon by the Revenue, holding them inapplicable on the facts. It followed the view that reversal of credit under Rule 57CC is not payment of duty through Modvat credit, and therefore the Modvat provisions and Section 11B do not govern such a situation. Where the credit is otherwise admissible and was wrongly reversed, the assessee can restore the credit on its own.

Conclusion: The assessee was entitled to take the re-credit on its own, and a refund claim was not required.

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