Appeal on CENVAT credit reversal order remanded for verification and correlation with statutory records.

The appellant appealed against an order alleging failure to reverse credit in their CENVAT account for returned goods. The impugned demand was confirmed with a penalty for not producing relevant records. The appellant contended they had provided records for correlation, not considered by lower authorities, and expressed willingness to correlate entries as per stock register and CENVAT account. The court considered the submissions, remanding the matter to verify and correlate disputed amounts in statutory records. The adjudicating authority was directed to pass an appropriate order after providing a hearing opportunity within 60 days, with the appellant instructed not to claim the amount during the proceedings.

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Issues involved: Allegation of not reversing credit u/s CENVAT credit account for returned goods.

In this case, the appellant appealed against the impugned order alleging that they returned rejected material but did not reverse the credit taken on the inputs in their CENVAT credit account. The appellant had cleared goods on duty payment, which were later returned, and they took credit on these goods without proper correlation with their records regarding further processing and duty payment. The impugned demand was confirmed against the appellant along with a penalty for failure to produce relevant records for correlation. The appellant contended that they had produced records for correlation, which were not considered by the lower authorities, and expressed willingness to correlate the entries as per stock register and CENVAT credit account before the lower authorities.

The learned Counsel's submissions were considered, and it was prayed that the appellant is willing to correlate the entries of returned goods cleared on payment of duty from their statutory records. The matter was remanded to the original adjudicating authority to verify and co-relate the disputed amount in the statutory records, with instructions to pass an appropriate order after providing a reasonable opportunity of hearing to the appellant. Additionally, during the pending of the matter, the appellant was instructed not to claim the amount with the department, and if they cooperate, the adjudicating authority was directed to complete the proceeding within 60 days of the order communication.

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