2004 (8) TMI 305

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....les, 1944 and Rule 6 of the Cenvat Credit Rules, 2002. 2.Such reversals are effected by debit entry in the PLA. A consolidated debit entry of such 8% amount was made on 20-2-2001 for an amount of Rs. 16,43,97,493/- for the period July, 2000 to January, 2001. However, the assessee found that for the month of January, 2001 on five invoices, an amount of value taken was Rs. 21,99,60,155/- while the actual value to be taken was only amounting to Rs. 2,19,60,155/-; the calculation and reversal of 8% on the incorrect value of Rs. 21,99,60,155/- resulted in a clerical error excess debit of Rs. 1.584 crores, vide entry 22, dated 22-2-2001 in the PLA. They corrected the clerical errors and suo motu took an entry of credit of Rs. 1.584 crores in t....

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....1 and corrections effected thereafter. Such order travelling beyond the notice is to be held bad in law, following the judgments of the Supreme Court in Reckit & Colman of India Ltd. v. CCE [1996 (88) E.L.T. 641 (S.C.)] and Prince Khadi Woollen Handloom v. CCE [1996 (88) E.L.T. 637 (S.C.)], and order is required to be set aside only on this ground. (b)        It is well settled that amounts of credit under the Modvat/Cenvat schemes are not duties. The amount of 8% required to be reversed is not even credit of specified duties but is a percentage of the value of the fully exempted goods. Equating the same with duty, and applying Section 11B, is not, therefore, called. Reliance by the appellants on the ca....