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TMI Blog2013 (7) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... rs who conducted the audit. Moreover, the reversal was not a conclusion of any legal process. Subsequently, when the assessee found that they were not eligible for the credit, they have promptly reversed the ineligible portion of the credit on their own. Therefore what has been done by the appellants is basically adjustment of the credit and it has no link to any transaction other than taking credit. Therefore, it is a mere adjustment and squarely covered by the decisions of Lark Wires & Infotech Ltd (2008 (7) TMI 167 - CESTAT AHMEDABAD. In favour of assessee. - Appeal No.E/211/2011 - A/10181/2013-WZB/AHD - Dated:- 11-1-2013 - Hon'ble Mr. M.V. Ravindran, Member (Judicial) For the Appellant : Shri N.K. Tiwari, Consultant For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority, after considering the submissions made before her, reversed the Order-in-Original and confirmed the demand raised on the appellant. 4. Ld.Consultant appearing on behalf of the appellant would submit that the appellant had correctly taken the CENVAT Credit on the items like Solvents, Master-coat, M.S. Bar, Angle, Beam, HR Coils etc. It is his submission that all these goods were used in the manufacture of vessels which are used by the appellant in the manufacture of Dyes Intermediates and the vessels are capital goods. It is his submission that initially on direction of CERA audit party, the appellant reversed the credit availed and interest was also paid on 15.04.2009. Subsequently, in the month of May 2009, he re-availed the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that these items on which credit was availed, can also be considered as input as they have used the said inputs for fabrication of machinery which is used in the manufacture of Dye Intermediates, they recredited the amount reversed as per the direction of CERA audit officers. 8. I find strong force in the contentions raised by the ld. Consultant on behalf of the appellant. If an assessee has correctly availed the CENVAT Credit and is directed to reverse the same by audit officers on the ground which is not examined by them, it would amount to forcibly directing the appellant to reverse the CENVAT Credit. I find that the contentions of the ld. Consultant that the items on which credit was availed initially, reversed as per the direction o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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