2009 (1) TMI 754

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....S.K. Panda, Jt. CDR, for the Respondent. ORDER Heard both sides on the stay petition. 2.1 The applicants admittedly render telecom services. They were taking credit on various input services from 10-9-04 and utilised the said credit towards payment of service tax on out put services rendered by them by debiting their Cenvat account. In April, 2005, they entertained doubts as to whether th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aken by them but could utilize only up to 20%, they claim to have retrospectively recast their Cenvat account by making those two cash payments. Having paid the above two amounts in cash, they felt that original excess debits have been nullified and they took amounts exactly equal to the cash deposits as fresh credits. He submits that these are mere adjustments of credit entries and does not invol....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....roneous payment of duty of service tax, it was open to them to apply for refund of same which would have been considered in accordance with the law, particularly the provision relating to unjust enrichment. Without preferring any such refund claim, to claim that they made adjustment by making cash deposits by treating certain past payments as 'erroneous' and subsequently taking equal amount as cre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ke a case of innocuous recasting of accounts as claimed by the learned advocate. Holding that they would be eligible to utilize only 20% of the credit taken, they have chosen to make cash payments in May, 2005 and August, 2005 to offset the excess credit utilized by them and claimed to have retrospectively nullified the excess utilisation of credit during the past period. It has not been satisfact....