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2014 (8) TMI 363 - AT - Central ExciseWaiver of predeposit of duty - Central Excise duty paid in cash/PLA under Rule 8 (3A) of the Central Excise Rules, 2002 - applicant already reversed the entire amount from CENVAT account which is in consonance with Rule 8(3A) - applicant submitted that it is incurring huge loss as evident from the Income Tax letter as well as the company has been declared layoff, there is no means to pay further amount as predeposit - Held that:- Karnataka High Court in the case of Manjunatha Industries Ltd. (2013 (4) TMI 534 - KARNATAKA HIGH COURT) held that in the case of default of discharging monthly duty, provisions of Rule 8(3A) of Central Excise Rules for utilizing CENVAT account amount is not with reference to arrears for the entire credit lying in the account. It is observed that the assessee has to pay excise duty through account current for each consignment at the time of removal. Hence the applicant is required to pay the duty by cash/PLA in respect of duty for the defaulting period. After considering the submission of the learned counsel that the applicant-company is incurring huge loss and it is declared lay off and the partial deposit made by them, applicant directed to make predeposit - Conditional stay granted.
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