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2012 (3) TMI 365 - AT - Central ExciseWaiver of condition of pre-deposit - Denial of CENVAT Credit - Partial duty liability cleared by CENVAT Credit - Partial amount cleared by cheque - Dishonour of cheque not informed by department or bank to appellant - Held that:- cheque for payment of balance excise duty for the month of July amounting to Rs. 3,93,607/- issued on 1-9-2009 was dishonoured. Therefore, prima facie, the aforesaid cheque, which was dishonoured for whatsoever reasons, cannot be taken as the payment of excise duty. Admittedly, the arrears of excise duty were paid on 2-2-2010 i.e. after a delay of 180 days from the date on excise duty became due and the interest thereon was deposited much later i.e. on 7-5-2010. Thus, there is a clear default in payment of excise duty for a period more than 30 days. As such, Rule 8(3A) of the Central Excise Rules, 2002 would come into play, which clearly provides that if the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in Rule 8(3A), the assessee shall, pay excise duty for each consignment at the time of removal, without utilizing the Cenvat credit. Appellant has availed of Cenvat credit in violation of Rule 8(3A) of Central Excise Rules, therefore, prima facie, the Adjudicating Authority has rightly disallowed the Cenvat credit adjustment against the excise duty payable and raised the demand for the excise duty on subsequent consignments removed without making good the shortfall in excise duty for the month of July, 2009 with interest - No prima facie case for waiver of the condition of pre-deposit of demand - Conditional stay granted.
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