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2012 (2) TMI 423 - AT - Central ExciseDuty demand - Duty as per Rule 8 of the Central Excise Rules, 2002 - Held that:- Rule 8(3A) prescribed only that the goods will be treated as non-duty paid and the consequence prescribed under Central Excise Rules will follow. It does not say that any consequences under Cenvat Credit Rules, 2004 will follow. That is to say the assessee is entitled to take credit during the defaulting period. The only consequence of Rule 8(3A) can be that payment through Cenvat credit cannot be the proper discharge of duty liability when the default continues. But once the default is made good, along with interest we prima facie, do not see any reason to hold that the payment made through Cenvat credit during the period of default cannot be considered as good payment - Following decision of CCE v. Saurashtra Cements - [2010 (9) TMI 422 - GUJARAT HIGH COURT] has held that in such situation penalty under Rule 27 of Central Excise Rules only will apply which will be a small amount only - Conditional stay granted.
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