2021 (10) TMI 699

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....appellant had availed and utilised cenvat credit of Rs. 3,37,291/-, which was taken twice in respect of returned goods from M/s Chetan Industries as per their cenvat credit account as detailed below:- Month Entry No. Date Amount of credit taken Reason / Audit objection Dec. 2016 9211007600 31.12.2016 337291 Duty debited twice, first at the time of clearance & second at the time of return of goods instead of re-credit/ taken, but no documentary evidence regarding twice reversal of duty has been provided. Dec. 2016 9211007601 31.12.2016 337291 Total 674582 4. On being pointed out, the appellant clarified that they had debited amount of Rs. 3,37,291/- twice, first at the time of clearance of s....

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.... dated 15.07.2020 and ordered for recovery of the same along with interest from the appellant, and imposed penalty of Rs. 3,37,291/- under Rule 14 and 15(2) of Cenvat Credit Rules, 2004. 7. Being aggrieved with the impugned order, the appellant filed before the Commissioner (Appeals) on the following grounds:- a. that goods were removed vide invoice dated 31.01.2016 and duty was debited vide entry No. 104397376 dt. 31.01.2016, goods were removed from the factory by paying the duty of Rs. 3,37,291/-. b. However, the goods were not accepted by the party and returned back, endorsement of the same was made on the same invoice of appellants. Appellants were eligible to take the credit of duty paid in their books, on the basi....

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....ime of clearance of the goods on 31.01.2016 vide Entry No. 104397376. Subsequently, as the buyer of the goods did not accept the goods, the same were returned and such returns was received on 03.02.2016. Instead of taking credit of the excise duty paid earlier, the appellant mistakenly again debited the cenvat account vide Entry No. 9040331431 on 03.02.2016. Thus, this resulted in twice debit of the duty. The appellant discovered this mistake towards the end of December, 2016 and thereafter made rectification entry on 31.12.2016 being Entry Nos. 9040241439/41 for the said amount of Rs. 3,37,291/- one for taking on the goods returned, and other for reversal of the wrong debit. The appellant have further supported these facts by demonstrating....