2010 (4) TMI 932

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....order. 2 Heard both sides. 3 The respondents have two units in close proximity to each other. The respondents have undertaken job work for M/s. Bayer Crop Science (India) Ltd. The Unit-I of the respondents cleared part of the inputs on which credit has been taken to their other units and to other job workers as directed by M/s. Bayer Crop Science (India) Ltd. While transferring the material to other units, respondents has adopted the value of 110% of landed cost and paid the higher duty and the recipient units have taken the duty paid by the first unit as credit. The Department issued show cause notice alleging that the Unit I ought to have paid the duty only to the extent of credit taken by Unit No. 1 and their having paid excess dut....

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.... There is no recovery by the respondents in excess of what was deposited to the Central Government and therefore provisions of Section 11D are not applicable. He also submits that in respect of inputs cleared during the period from 13-6-05 to 17-2-06, the demand having been proposed by show cause notice dated 15-6-07, the same is time barred. 6 I have carefully considered the submissions from both sides. The unit No. 1 which has cleared the inputs as such, undisputedly is required to reverse the credit equal to the amount of credit originally taken by them at the time of removal of goods as such during the relevant period. Definitely there is excess payment of duty (or excess reversal of credit) on the inputs cleared as such to another u....