2015 (9) TMI 1375

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....envat credit of Rs. 28,55,142/- on the inputs, for which it could not produce the supporting documents before the internal audit wing of the Central Excise department. On being pointed out regarding such irregularities, the respondent voluntarily reversed such credit during March 2006 and duly intimated the department. However, during July 2006, the respondent again took the said credit on the ground that the duty paid documents were all along available with it. Taking of such suo moto credit was sought to be disallowed by issuance of show cause notice on the ground that no provisions exist in the Cenvat Credit Rules, 2004 (for short, referred to as CCR), which calls for self refund of the amount already reversed. The show cause notice was ....

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.... Surat-II [2013 (298) E.L.T. 260 (Tri.-Ahmd.)]. 5. Heard the learned counsel for the parties and perused the relevant records. 6. Sub-rule (1) of Rule 3 of the CCR entitles a manufacturer to take Cenvat credit of the duties and taxes paid on the inputs or capital goods received in the factory of manufacture of final product. Sub-rule (4) of Rule 3 provides the conditions for utilisation of such credit. One of the conditions itemized in the said rule is towards utilization of credit for payment of any duty of excise on the final product. In the present case, it is an admitted fact on record that the inputs on which credit has been taken by the respondent have suffered duty and the said inputs have been received under the cove....

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....1B of the Central Excise Act, 1944 claiming refund of duty........." 8. The crux of the subject decided in the cases relied on by the respondent is that reversal of Cenvat credit is not payment of duty and therefore, provisions of Section 11B of the Central Excise Act, 1944 are not applicable; and as such, there is no irregularity, if the assessee takes the credit on its own. In view of above, I concur with the findings recorded by the authorities below that taking of credit on the basis of available documents, without disputing their genuineness, cannot be equated with the case of self refund. 9. There is no stipulation in the Cenvat statute that an assessee is required to obtain prior permission from the jurisdictional Cen....