Suo motu re-credit of reversed credit rejected; Larger Bench precedent upheld the duty demand and penalty.

Assessees who had reversed credit were not permitted to take it back suo motu, as the issue was treated as covered against them by the Larger Bench in BDH Industries Ltd., following Indo-Nippon Chemicals Co. Ltd. and the affirming order of the Supreme Court. The contrary Gujarat High Court decision cited by the appellant was not accepted as aiding the claim, and the duty demand and penalty were upheld.

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Issues: Whether assessees who had reversed credit could suo motu take it back.

Analysis: The issue was held to be covered against the assessees by the Larger Bench decision in BDH Industries Ltd., which followed the Gujarat High Court decision in Indo-Nippon Chemicals Co. Ltd. and the affirming order of the Supreme Court. The contrary Gujarat High Court decision relied on by the appellant was treated as not advancing the case.

Conclusion: The appeal was dismissed and the impugned order confirming duty demand and penalty was upheld.

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