2007 (5) TMI 457 - AT - Central Excise

Summary

Issues involved:
The appeal concerns the eligibility of the appellant to avail suo motu credit in RG 23A for an amount paid twice over, leading to a Show Cause Notice for recovery of the credit availed.

Summary:

The appellant cleared duty paid finished goods from their factory on multiple dates and discharged duty liability twice over. Subsequently, they availed suo motu credit in RG 23A after realizing the double payment and informed the Range authority accordingly.

The Adjudicating authority concluded that the appellant should have pursued a refund claim instead of taking suo motu credit for the excess duty paid.

Considering conflicting decisions in previous cases, the matter was referred to a Larger Bench to determine whether an assessee can avail suo motu credit for excess duty paid without applying for a refund, as per the case of Tide Water Oil Company, or if the assessee must follow the refund route, as per the case of Comfit Sanitary Napkin (I) Pvt. Ltd.

The Division Bench recognized the need for a full Bench of the Tribunal to settle the issue due to the differing views on the availment of suo motu credit in cases of excess duty payment. The Registry was directed to forward the reference for consideration by the Honorable President.