Cenvat re-credit for tax paid again through TR-6 challan was allowed, as the transaction was treated as account adjustment, not refund.

Where service tax earlier debited from Cenvat credit was later paid again in cash through TR-6 challan as a correction of accounts, the transaction was treated as an adjustment between the Cenvat account and PLA account, not as a refund claim. On that basis, re-credit in the Cenvat account was held permissible, and the limitation under Section 11B of the Central Excise Act, 1944 was inapplicable because the matter did not involve refund of excess duty.

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Issues: Whether the limitation under Section 11B of the Central Excise Act, 1944 applied to a case where service tax earlier debited from Cenvat credit was subsequently paid again through TR-6 challan, and whether re-credit in the Cenvat account could be denied.

Analysis: The amount was initially debited from the Cenvat account for payment of service tax on GTA services and was later deposited in cash through TR-6 challan at the instance of the Central Excise officers. The transaction was treated as a correction of accounts and an adjustment between the Cenvat account and PLA account, not as a claim for refund of excess duty. Since the payment made from the Cenvat account was subsequently matched by cash deposit, the assessee was entitled to re-credit. The limitation under Section 11B was held inapplicable because the matter did not involve a refund claim.

Conclusion: The re-credit was permissible and the refund limitation did not apply; the Revenue's appeal was rejected.

Ratio Decidendi: Where an amount debited from Cenvat credit is later paid again in cash through TR-6 challan as a correction of accounts, the matter is one of adjustment and not refund, and limitation under Section 11B of the Central Excise Act, 1944 does not bar re-credit.

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