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2014 (11) TMI 422 - ALLAHABAD HIGH COURTWaiver of pre deposit - Delay in payment of duty - Violation of provisions of Rule 8(3A) of Central Excise Rules, 2002 - Penalty u/s 11AC – Availment of CENVAT Credit - Held that:- out of the total duty demand of ₹ 88.80 lacs, an amount of ₹ 16.70 lacs was deposited from the cenvat credit, which was not permissible in view of the provisions of Rule 8(3A) of the Rules. Moreover, it is also necessary to note that this is not a case where there was a default simpliciter. The assessee furnished details of 32 cheques, out of which, it is an admitted position that only one cheque of ₹ 92,700/- was honoured; 18 cheques for the payment of duty in the amount of ₹ 34.37 lacs were not honoured due to insufficiency of funds. But, what reflects on the willful misstatement of the assessee is that, in the case of the balance 13 cheques, the assessee produced counterfoils of the Bank with stamps and it was, on enquiry, found that the cheques were never presented with the Bank at all for the payment of duty. Provisions of Rule 25 of the Rules were attracted since there was an intent to evade the payment of duty. For these reasons, prima facie, we are of the view that no substantial question of law would arise in the appeal. However, in order to facilitate compliance with the order of the Tribunal, we extend time for making deposit by further period of two months from date of this order - Decided against the assessee.
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