TaxTMI 
TaxTMI 
2018 (10) TMI 696
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.... it was noticed that the appellants had availed CENVAT credit of Rs. 11,48,094/- vide sl. No. 52 in the CENVAT account register for the month of July 2014 without any supporting documents as prescribed under CENVAT Credit Rules, 2004. The appellants explained that they had paid excess duty utilizing the CENVAT credit for the month of July 2012 and November 2012 and on realizing the same had taken suo moto credit of the said amount. The department was of the view that the credit availed is ineligible as such credit was not supported by documents and that the appellants are not entitled to take suo moto credit. Show cause notice was issued raising the above allegations and proposing to recover the wrongly availed credit to the tune of Rs. 11,....
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.... only an error made in the book entry. The recredit so taken by the appellant was declared in ER-1 returns filed for July 2014. The appellant also informed such recredit at the time of audit investigation. The department alleges that the appellant ought not to have taken suo moto credit and ought to have filed a refund claim for the excess duty paid. She submitted that the appellant had availed the recredit only because the credit had been not utilized for any duty liability and was eligible for the same. She submitted that the authorities below had relied upon the decision of the Larger Bench of the Tribunal in the case of BDH Industries Ltd. Vs. Commissioner of Central Excise - 2008 (229) ELT 364 (Tri. LB). That the said Larger Bench deci....
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....oto credit of the excess CENVAT amount debited by them. The department has denied the suo moto credit alleging that there are no proper documents for availing the credit for the second time. I find that this allegation by the department is erroneous for the reason that for the second time, the appellants have taken the credit only because they had made a wrong book entry at the initial stage. This does not amount to availing credit for second time. The Larger Bench of the Tribunal in the case of BDH Industries Ltd. (supra), had held that the assessee cannot take suo moto credit. However, the Hon'ble Karnataka High Court in the case cited supra had earlier held that the mistake of debiting the amount in the CENVAT credit can be corrected by....