2018 (12) TMI 713

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....PUF Pillow & Coir Mattress classifiable under Chapter 39 & 94 of the First Schedule to the Central Excise Tariff Act, 1985. The respondent assessee availed benefit of Notification No.01/2011-CE dated 01.03.2011 on Coir Mattress and paid Central Excise duty @1% Adv [2% Adv w.e.f. March, 2012]. It is the case of the appellant revenue that one of the specific conditions in the notification is that cenvat credit on inputs and input services would not be availed for payment of central excise duties. It is also the case of the appellant revenue that the respondent assessee has been availing cenvat credit against their clearance of coir mattress during the period from July, 2011 to August, 2012. On being pointed out the respondent assessee paid du....

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....tly held that this reversal amounts to correction of entries in the cenvat account and does not tantamount to refund of tax already paid and hence provisions of Section 11B are not applicable in such cases and accordingly, suo moto credit can be taken. Ld. Advocate relied upon various decisions in support of his submissions and filed written submission. 4. Heard both sides and perused the appeal records. 5. I find that the issue in the present appeal is regarding suo moto re-credit of duty amount of Rs. 13,31,116/- taken by the respondent assessee vide RG-23, Pt-II Sl.No.368 dated 17.08.2012 without filing any claim for refund under Section 11B. On perusal of the grounds of appeal filed by the department I find that they have not alle....

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....(89) E.L.T. 247 (S.C.)] which was delivered in relation to the amendment made in 1991 to introduce the concept of unjust enrichment with respect to refund cases under Section 11B of the Central Excise Act, 1944. Section 11B of the Central Excise Act talks about refund of duties and the related amendment was introduced to the effect that claimant should establish that the burden of duty, for which refund claim is filed, is not passed on to the customers. In the present case, the issue is not regarding refund of duties but taking of admissible credit, which was earlier reversed under protest and on receipt of a favourable order from the first appellate authority. Therefore, the judgment of the Hon'ble Supreme Court in the case of Mafatlal Ind....