TaxTMI 
TaxTMI 
2014 (7) TMI 30
X X X X Extracts X X X X
X X X X Extracts X X X X
..../- in September, 2005, reversed the same in September, 2006, and suo moto took credit of Rs. 36,21,542/- in the month of September, 2006 itself. Show cause notice dated 07.08.2008 was issued to the appellant proposing recovery of Rs. 36,21,542/- along with interest and penalties, as the credit was allegedly taken without support of any duty paying documents and without filing any refund claim. The adjudicating authority confirmed the demand of Rs. 36,21,542/- against the appellant along with interest, and imposed penalty of equivalent amount under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. On appeal by the appellant, the Commissioner (Appeals) upheld the Order-in-Original against which t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (c) S. Subrahmanyan % Co. Vs. Commissioner of Central Excise, Vadodara - [2011 (268) ELT 497 (Tri. Ahmd.)]; (d) Lark Wires & Infotech Ltd. Vs. Commissioner of Central Excise & Customs, Vadodara-II - [2008 (231) ELT 154 (Tri. Ahmd.)]; (e) Esdee Paints Ltd. Vs. Commissioner of Central Excise, Ahmedabad - [2010 (249) ELT 225 (Tri. Ahmd.)] (ii) That the lower appellate authority has passed adverse order against the appellant by relying upon the case law of BDH Industries Vs. Commissioner of Central Excise (Appeals) - [2008 (229) ELT 364 (Tri. LB)], which has not yet attained finality in view of appeal admitted by the Hon'ble H....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to be taken within a reasonable time of receipt of inputs. 5. Heard both sides and perused the case records. The issue involved in the present proceedings is whether appellant can take suo-moto credit of an amount which was reversed earlier and as to after how much time such credit can be taken. In the present case the appellant has clearly recorded in 'Statement of Service Tax Credit' for the month of September, 2006 (copy at page 42 of the appeal papers) that a credit of service tax of Rs. 37,47,071/- and Education Cess Rs. 42,608/- (Total Rs. 37,89,679/-), taken in September, 2005, is reversed and revised credit of service tax Rs.35,51,684/- and Education Cess Rs. 69,858/- (Total Rs. 36,21,542/-) for the period from 10.09.2004 to 31.03....
X X X X Extracts X X X X
X X X X Extracts X X X X
....exempted services. The objection of the Revenue herein is that even for a reversal of an entry, the assessee should have followed Section 11B of the Central Excise Act, 1944 lest there would be unjust enrichment. Consequently, there could be no such thing as suo motu reversal, except through a petition made under Section 11B of the Central Excise Act, 1944. 13. We do not subscribe to the view expressed by the Revenue. Admittedly, the assessee originally availed the Cenvat credit on Service Tax for discharging its liability. However, for sound reasons, it reversed the credit. Strictly speaking, in this process, there is only an account entry reversal and factually there is no outflow o....