2023 (8) TMI 1138

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..... ancy is found as regard the second time payment of duty and suo-moto re-credit thereof then no objection could have been raised by the department. The appellant being law abiding assessee even though suo-moto credit was available to them, they had reversed the same on pointing out by the audit officers. Thereafter, the department could have regularized by allowing the re-credit but instead the appellant were issued the show cause notice for demand of re-credit made by the appellant suo-moto despite the fact that they had already reversed the same - the show cause notice itself ab initio, void and illegal. The appellant has legal right to re-credit the amount of Rs. 1 crore, in their Cenvat Account - appeal allowed. - HON'BLE M .....

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..... rmed. Therefore, the present appeal filed by the appellant. 2. Shri S. Suriyanarayanan, Learned Counsel, appearing on behalf of the appellant submits that once the appellant had reversed the credit of duty, which was paid second time no show cause notice should have been issued and case could have been closed after reversal on the direction of the audit. He submits that by adjudicating the show cause notice and Adjudicating Authority has confirmed the duty paid twice, which is absolutely incorrect the illegal. Under any circumstances on the clearance of goods duty cannot be demanded twice. 2.1 He submits that after reversal of the credit even on issue a show cause notice the appellant have made their submission before the Adjudicating .....

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..... er of month along with monthly payment of duty. Therefore, there is no dispute that on one clearance duty was paid twice, therefore the duty paid second time needs to be restored to the appellant as credit, the appellant had taken suo-moto credit. In our considered view if no discrepancy is found as regard the second time payment of duty and suo-moto re-credit thereof then no objection could have been raised by the department. 4.1 We find that the appellant being law abiding assessee even though suo-moto credit was available to them, they had reversed the same on pointing out by the audit officers. Thereafter, the department could have regularized by allowing the re-credit but instead the appellant were issued the show cause notice for d .....

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