9911796707
TMI Blog2004 (8) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... redit 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 the PLA on 24-3-2002 and intimated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 case of Priya Blue Industries Ltd. v. CCE & C [2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; Cross entry of credit taken to offset an incorrect debit entry by keeping cross references is the only prescribed method of Accountants in Book Keeping. Such entry cannot be denied on the grounds that only TR-6 challan amounts could be credit entries which could be made in the PLA, as made out in the notice. The notice appears to be issued in ignorance of the instructions on maintenance of PLAs and Book Keeping Practices accepted all over the world. (e) No reasons are found to uphold the penalty of Rs. 5,000/- as arrived by the adjudicator. 4.In view of the findings arrived, the order is to be set aside as regards the demand made and penalty imposed. 5.Consequen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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