2026-VIL-1511-CESTAT-AHM-CE
  1. Home
  2. 2026-VIL-1511-CESTAT-AHM-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Refund of Duty on Value Addition - Suo Moto Credit of Differential Duty - Appellant manufacturer availed suo moto credit of differential duty for financial year 2008-09 in account current in April 2010 as per provisions of Notification No. 39/2001-CE - show cause notice was issued for recovery of said credit on 29.02.2016 after period of approximately six years - Whether the appellant by taking suo moto credit of the refund amount has violated the provision of Notification No. 39/2001-CE - HELD - Para 2C(g) of Notification No. 39/2001-CE prescribes that excess amount of credit availed by manufacturer shall be reversed within five days from receipt of intimation and if not reversed within above time period it shall be recoverable as if it is recovery of duty of excise erroneously refunded - A combined reading of Notification No. 39/2001-CE and Section 11A of the Central Excise Act, 1944 clearly reveals that SCN for recovery of refund granted erroneously to a manufacturer, can be issued within 5 years from the date of refund - In present matter appellant had availed suo moto credit of duty in April 2010 but notice for recovery was issued on 29.02.2016 i.e. after period of five years from date of taking credit - Entire proceedings emanating from time barred show cause notice are not sustainable - Appellant had submitted statement for annual differential duty for financial year 2008-09 on 11.05.2009 and when no decision was communicated for almost one year appellant took suo moto credit in April 2010 - Appellant cannot be faulted as it acted as per provisions of Notification and breach if any was occasioned by breach of procedure committed by Departmental officer – The impugned order is not sustainable on limitation. Even on merits demand does not survive – The appeal allowed and impugned order set aside
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GST Critical issues: ITC on...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?