Panasonic Life Solutions India Private Limited Vs Commissioner of CGST & and Central Excise (CESTAT Ahmedabad)
Summary: The CESTAT Ahmedabad allowed the appeal filed by Panasonic Life Solutions India Private Limited, Kutch, concerning recovery of Rs. 54,00,034/- taken as suo moto credit in the account current under Notification No. 39/2001-CE dated 31.07.2001. The appellant manufactures Glass Shell, Wires & Cables, Ceiling Fan, Switch Gear and other goods at its Kutch unit and was availing the area-based exemption under the Notification No. 39/2001-CE, as amended.
The audit noticed that the appellant had taken suo moto credit of Rs. 54,00,034/- in April 2010 by endorsing it as “Re-credit (08-09 annual)”. A show cause notice dated 29.02.2016 proposed recovery under Section 11A read with Notification No. 39/2001-CE, together with interest under Section 11AA and penalty under Section 11AC read with Rule 25 of the Central Excise Rules, 2002. The Joint Commissioner confirmed the recovery, interest and equal penalty on 25.01.2018. The Commissioner (Appeals) rejected the appellant’s appeal, resulting in the present proceedings.
The appellant principally contended that the demand was barred by limitation because the credit was taken in April 2010 whereas the show cause notice was issued on 29.02.2016. It was also submitted that an application/statement for the annual differential refund for financial year 2008-09 had been filed with the Jurisdictional Assistant Commissioner on 11.05.2009, but no decision had been communicated. The appellant relied on various judicial decisions, including Parle Product Pvt. Ltd., Government of India Vs. Citedal Fine Pharmaceuticals, Valley Valvet P. Ltd., SAL Steels Limited, Sun Pharma Laboratories Ltd., Reckitt Benckiser, Saurashtra Cement Ltd. and Amrit Foods.
