2011 (9) TMI 292

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....: P R Chandrasekharan: The appeal and stay applications are directed against order-in-appeal no. SR/228/NGP/2009 dated 12.10.2009 passed by the Commissioner of Customs & Central Excise (Appeals), Nagpur. 2. The appellant M/s Ballarshah Plywood are manufacturers of plywood. They defaulted in making monthly payment of duty for the period 20.01.2006 to 19.03.2006 and they paid the duty along wi....

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....f Rs.7,39,067/- suo motu in the month of September, 2007 which was earlier wrongly paid by them through CENVAT credit amount and utilized the same against dispatch of goods in the month of September, 2007. Since the appellants availed credit suo motu, a show-cause notice was issued on 15.09.2008 proposing as to why Rs.7,39,067/- should not be recovered from them under rule 14 of the Cenvat Credit ....

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.... 3. The counsel for the appellant submits that they had taken CENVAT credit suo motu as they had paid the duty amount in cash subsequently and therefore, the CENVAT credit was rightly entitled to them. Since they were rightly entitled for the credit, it is the contention of the counsel that the appellant has not caused any loss of revenue to the exchequer. The counsel further pleads that the appe....

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....that the assessee cannot take suo motu credit of CENVAT credit disallowed to them unless and until a finding has been given by the competent authority that they are entitled for the credit. In the instant case, even before the appellate authority passed the order, the appellant assessee took suo motu credit of the CENVAT credit of Rs.7,39,067/- which was not permissible under the law. Considering ....