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2020 (4) TMI 197 - CESTAT HYDERABADBar on utilization of Cenvat credit - Rule 8(3A) of Central Excise Rules (CER), 2002 - denial on the ground that they had not paid the duty in time and thereby forfeited their right to use Cenvat credit - HELD THAT:- A plain reading of Rule 8(3A) of CER, 2002, makes it clear that it applies to such cases where the assessee had defaulted in payment of excise duty beyond 30 days from the due date - This does not apply to the present case because in their case they have already paid as duty even before the audit whatever they declared as payable. The audit actually found that some additional amounts were payable over and above what was declared in their ER returns as duty. Rule 8(3A) does not apply to every case where the department, during the scrutiny of returns, during audit or during investigation finds any additional amount is payable as duty of excise. All such demands will be recoverable by issuing a notice under section 11A of the Central Excise Act, 1944, but they do not get covered under Rule 8(3A) of Central Excise Rules, 2002. The assessee’s case is a case of demand under section 11A and is not covered by Rule 8(3A) and hence demand on this ground needs to be set aside - penalty also set aside - appeal allowed - decided in favor of appellant.
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