TMI Blog2012 (3) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty amount of Rs. 3,93,607/- and interest amounting to Rs. 25,234/- for 180 days was paid on 7-5-2010. 3. It is alleged that during the period August, 2009 to December, 2009, the appellant adjusted the excise duty on the goods cleared from his unit against his Cenvat credit and the amount of duty short paid was paid within 30 days of respective clearances. 4. The Commissioner, Central Excise, Noida was of the view that since the duty payable for the clearances made in the month of July amounting to Rs. 3,93,607/-, was not paid within 30 days of its becoming due, in view of Rule 8(3A) of Central Excise Rules, 2002, the appellant/applicant was supposed to pay the excise duty on the goods cleared subsequent to the default in cash irrespec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise duty with interest. However, the balance excise duty of Rs. 3,93,607/- along with interest for 180 days was paid on 2-2-2010 and 7-5-2010 respectively. Ld. Counsel contends that there was no intention on the part of the appellant to avoid payment of excise duty and the delay has been caused because the factum of dishonor of cheque was not brought to the notice of the appellant either by the Revenue or by the Bank. Therefore, the appellant could not be penalized for delay. It is further submitted that since the appellant has already paid the balance excise duty and availed of Cenvat credit in respect of the subsequent clearances of excisable items asking him to make payment of the demand with interest would result in double taxation. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 uti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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