In the case of Devang Paper Mills Pvt Ltd Vs UOI, it was held that merely mentioning wrong code in the process cannot result into such harsh consequence of the entire payment not being recognized as valid, incurring further liability of repayment of the basic duty with interest and penalties.
The petitioner has incurred duty liability of Rs.22, 15,000/, which liability the petitioner discharged in cash through personal ledger account. While paying such duty, the ‘challan’ under which the amount is deposited in the bank, the petitioner, due to oversight, mentioned the assessee Code No.AADCD7232REM001 instead of Code No.AADCD7232REM002. The petitioner immediately thereupon pointed out this issue to the Audit Officer under letter dated 19.03.2015 in detail explaining the background leading to such mistake. On 05.05.2015, the Department wrote to the petitioner that the assessee code now cannot be changed and only remedy available to the petitioner would be to seek refund. It was conveyed to the petitioner that the duty paid in the wrong assessee code cannot be treated as payment of excise duty and the assessee should therefore make payment of the said amount again. Any delay would invite interest and penalty.
CENVAT credit of outdoor catering service is allowed
The outdoor catering service provided has not been used for the personal use or consumption of the employee and the said service has been provided by the employer to its employees for preserving proper working atmosphere in the factory for enhancing the productivity. Therefore, the CENVAT credit of outdoor catering service is allowed.