Case Law Details
Bayer Vapi Pvt Ltd. Vs C.C.E. & S.T.-Daman (CESTAT Ahmedabad)
In a remarkable ruling by CESTAT Ahmedabad, Bayer Vapi Pvt Ltd. successfully appealed against the imposition of redundant excise duty demands and penalties by C.C.E. & S.T.-Daman. The core issue in this case was the company’s right to claim Cenvat re-credit after a suo moto reversal, especially when no discrepancies were found in the audit. This article dissects the intricacies of the judgment, offering insights into the regulations surrounding Cenvat re-credit, suo moto reversal, and the legal ramifications of the case.
The Background
Bayer Vapi had paid the export duty twice: first at the time of the clearance of goods and then inadvertently with their monthly dues. An audit objection arose, stating that Bayer Vapi should have applied for a refund rather than taking a suo moto re-credit.
The Show Cause Notice
Please become a Premium member. If you are already a Premium member, login here to access the full content.
