Brief Facts of the Case
The appellant availed CENVAT credit on input and capital goods. On a visit of the Central Excise officers, Preventive Unit, Thane – I on 20/02/2007, on their insurance, the appellant have reversed CENVAT credit of Rs.1, 70,737/- on 12/03/2007. Subsequently, neither any query was raised by the department nor any show cause notice was issued. Therefore, the appellant took re-credit of the said amount on 07/05/2007. For this re-credit a show because notice dated 09/07/2007 was issued proposing disallowance of the said re-credit, demand of interest under Section 11AB and penalty under Rule 15 of the CENVAT Credit Rules, 2004. In adjudication, the adjudicating authority has confirmed the demand along with interest and penalty. Aggrieved by the said order, an appeal was preferred by the appellant before the Commissioner (Appeals), who upheld the order-in-original. Aggrieved by the said impugned order the appellant appealed before Hon’ble CESTAT, Mumbai.
Contentions of the Appellant
The appellant contended that CENVAT credit was denied on the ground that for taking re-credit no document is available. The appellant submitted that re-credit is nothing but the reversal of the debit made at the instance of the departmental officers. Though the departmental officers got this amount debited, but later on no dispute was raised about the admissibility of the said credit. Therefore, the appellant correctly took re-credit of the said amount in their CENVAT credit account. The re-credit is nothing but as good as fresh CENVAT credit availed in accordance with CENVAT credit Rules. It is only a book entry, though for the time being the amount was debited at the instruction of the departmental officers. However, when no demand or show cause notice was issued in respect of the said reversal amount, CENVAT credit of the said amount stand admissible to the appellant and, therefore, they have re-credited the same. In support, the appellant placed reliance on the following judgments:
