Order Date – 11 January 2024                                                                                         

Parties:M/s. Mayur Veneer & Plywood Industries Vs Commissioner of CGST & CX, Howrah Commissionerate

Facts –

• The Appellant, M/s. Mayur Veneer & Plywood Industries, have utilized an excess payment of duty in the month of December 2014 against the demand in the month of February 2015.
• However, the department interpreted it as if they have availed the excess credit suo motu and adjusted the same against their liability for the of month of February 2015, which is not permissible.

Issue –

• Whether excess duty paid can be utilized against the demand?

Order –

• The Tribunal observed that the appellant is permitted to adjust excess payment, if any, made on the subsequent month. There is no provision in the Rules that the adjustment must be made immediately after the next month.
• Hence there is no infirmity in the adjustment made by the appellant in the month of February 2015 and reporting the same in the return filed in the month of May 2015. Accordingly, held that the demand of duty along with interest and penalty imposed in the impugned order is not sustainable.
• The appeal is allowed.