2025 (2) TMI 1983

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....(i) The appellant is inter alia engaged in the manufacture of Pharmaceutical Products and Food Supplements falling under chapter Heading Nos. 3004 and 2106 of the Central Excise Tariff Act, 1985, respectively. (ii)The appellant is a unit set up in August 2007 holding CE Registration and eligible for the benefit of Notification No. 20/2007-CE dated 25.04.2007 as amended by Notification No. 38/2008-CE dated 10.06.2008 (hereinafter referred to as the "said Notification"). They were claiming the benefit of the said Notification in respect of dutiable goods manufactured and cleared by them. (iii) In terms of Para 2D of the said Notification, the appellant had opted for availing suo-moto credit of eligible amount in the next mon....

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....nd applications were accompanied with a declaration of the total duty paid, credit taken in PLA, differential amount of refund due. Vide the said refund applications, the appellant sought for the Verification Certificate from the department so that they can avail the self-credit of the said differential amount. Thereafter, once the stipulated time period of sanctioning the refund order lapsed and the department did not sanction the refund of the appellant, they took suo-moto self-credit of the amounts mentioned in the refund applications. Subsequently, the appellant intimated the department of such availment while filing the monthly refund claim of the relevant month. Further, the appellant also disclosed this fact in the 'Remarks Colum....

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....h led to the appellant to take self-credit for the other financial years. (viii) Thereafter, on 08.09.2016, by invoking the extended period of limitation a Show Cause Notice was issued to the Appellant proposing to recover an amount of Rs. 5,70,36,233/- (Rs. 1,61,69,831/- for FY 2011-12 Rs. 2,59,27,742/- for FY 2012-13, and Rs. 1,49,38,660/- for FY 2013-14) for the relevant period on the ground that the Appellant took self-credit of the differential annual refund amount without waiting for an order in the said matter. (ix) The appellant challenged the said notice vide its reply dated 29.09.2016 contesting the proposal raised in the Show Cause Notice. However, without proper consideration of the said reply, the Ld. Commissi....