Suo moto re-credit allowed as cenvat on outward transportation decided in favour of appellant

C.C.E. & S.T.-Vadodara-I Vs Welspun Corp Ltd (CESTAT Ahmedabad)

CESTAT Ahmedabad held that suo moto re-credit duly allowable as eligibility of cenvat credit on outward transportation has attained finality and decided in favour of the appellant.

Facts- The respondent had availed cenvat credit in respect of outward transportation which was disputed by the department by issuing a show cause notice and proposing to deny cenvat credit on outward transportation. The respondent had reversed the cenvat credit in register vide their RJ- 23A-Pt-II, entry No 2583 dated 08.12.2005 and 967 dated 15.06.2007.

Accordingly, the said suo motu credit was taken after the Tribunal allowed the cenvat credit on outward transportation. The revenue has issued show cause notice dated 10.04.2013 whereby it was proposed to disallow the cenvat credit of Rs. 59,35,233/- which was suo motu re – credited by the respondent. The proceeding of the said show cause notice was dropped by the Commissioner (Appeals) vide impugned order-in original dated 15.10.2013. Being aggrieved by the said order dated 15.10.2013, the revenue filed the present appeal

Conclusion- As regard the suo motu re-credit we are of the view that the entire proceeding was to disallow the cenvat credit on outward transportation and during the proceeding the respondent had reversed the credit when the Tribunal has allowed the credit on merit in respect of outward transportation vide Tribunal Final Order No A/416-417/WZB/AHD/2012 dated 19.03.2012. The respondent was legally entitled for re-credit as consequential relief flowing from the said Tribunal’s order. Therefore we do not see anything wrong in taking the suo moto re-credit which is clearly in compliance to the Tribunal’s order.

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