2009 (8) TMI 582 - AT - Central Excise

Cenvat Credit- Re-credit- Revenue filed this appeal against the Order of the Commissioner (Appeals), whereby the respondents were allowed to take credit of Service Tax amounting to Rs. 2,72,448/- and education cess of Rs. 5,449/-in their Cenvat Account. The revenue submits that the respondents debited the amount of Rs. 2,72,448/- on 31-7-2005 from Cenvat account and filed refund claim on 29-8-2006. Which is beyond the stipulated period of one year as prescribed under Section 11B of the Central Excise Act, 1944. Held that- I agree with the findings of the Commissioner (Appeals). Accordingly, the appeal filed by the Revenue is rejected.

Summary

In the appellate tribunal CESTAT, New Delhi, the Revenue filed an appeal against an order by the Commissioner (Appeals) allowing respondents to take credit of Service Tax and education cess in their Cenvat Account. The Revenue argued that the refund claim was beyond the stipulated period of one year under Section 11B of the Central Excise Act. The respondents had debited the amount from the Cenvat account and filed a refund claim after the prescribed period. The Revenue contended that the assessee was not entitled to avail suo moto credit and must file a refund claim under Section 11B. The Advocate for the respondent argued that the case was not about refund of Cenvat Credit but an adjustment between the Cenvat and PLA accounts. After reviewing the records, the tribunal found that the respondents had adjusted the amount between the accounts, and since they were not claiming any refund of duty, the re-credit of the amount in the Cenvat Account was permitted. The tribunal agreed with the Commissioner (Appeals) and rejected the appeal filed by the Revenue on 6-8-2009.