Case Law Details
Mideast Integrated Steels Ltd. Vs Commissioner of CGST & Excise (CESTAT Kolkata)
CESTAT find that the Appellant had discharged the duty burden from their PLA Account and as such, there is no dispute about the same. With such payment of duty out of PLA, they have reversed the debit entry made by them in their Credit Account which was used for payment of duty earlier. Though there was no proposal in the Show-cause notice to deny such re-credit, the original Adjudicating Authority went ahead and even after accepting that the duty was paid subsequently in cash, disallowed the re-credit and confirmed the duty to that extent. It is my considered view that once the duty has been paid in cash, earlier payments made through Cenvat Account are liable to be re-credited in the said Account and no objection that such re-credit was not on the basis of any eligible document can be adopted by the Revenue. Admittedly, it is not a case of availment of credit in the ordinary course, but such re-credit was to neutralize the subsequent payment of duty in cash. My view gets fortified by the judgement of the Hon’ble High Court of Madras in the case of ICMC Corporation Limited vs. CESTAT, Chennai reported in 2014 (302) ELT 45 (Mad.), whereby the Hon’ble High Court held that the suo motu credit of Cenvat reversed earlier involved only an account entry reversal and in the process, no outflow of funds from the assesse and accordingly, filing of refund claim under Section 11B of the Central Excise Act, 1944, is not required.
Facts of the present case are squarely covered by the aforesaid decision of the Hon’ble High Court of Madras. Accordingly, by following the judicial discipline and by respectfully following the ratio of the judgement of the Hon’ble High Court of Madras, I hold that the impugned orders cannot be sustained and the same are set aside.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The Appellant is in appeal assailing the order of the Ld.Commissioner (Appeals).
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