TMI Blog2014 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ling under Rule 49 of the Central Excise Rules, and the language used therein was also different. Therefore, the ratio of the said decision cannot apply in the present case. On the other hand the decision of the Hon'ble High Court of Karnataka in the case of Manjunatha Industries case and the Hon'ble High Court of Madras in Unirols Airtex case are directly on the issue and interprets Rule 8 (3A) by stating that "utilization of Cenvat Credit during default period is an exercise in nullity." Therefore, the claim of the appellant that the reversal of Cenvat Credit of ₹ 74,45,393/- confirmed by the adjudicating authority is not correct in law, prima facie is not sustainable. - stay granted partly. - Appeal No.E/86108/14 - - - Dated:- 5-5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Hon'ble High Court in the case of Lloyds Steel Industries Ltd. Vs. UOI - 2004 (183) ELT 351 (Bom.). According to the learned counsel, he is liable to pay sum of ₹ 51,95,736/- only towards the default in payment of excise duty, which he assures that would be made by the appellant if sufficient time is granted. 4. The learned Additional Commissioner (AR) appearing for the revenue on the other hand submits that Rule 8(3A) of the Central Excise Rules, 2002 very categorically and clearly states that If the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and sub-rule (4) of rule 3 of CENVAT Credit Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmation of duty in the impugned order is sustainable in law and accordingly, the appellant be put to terms. 6. We have carefully considered the submissions made by both by both sides. 6.1 The provisions of sub-rule 8 (3A) was introduced to curb the tendency on the part of assessees in defaulting in payment of duty and the language used in the said Rule, especially the use of non-obstante clause makes it absolutely clear that during the period of default, the assessee cannot utilize the credit lying in the Cenvat Credit account for the purpose of payment of excise duty. The decision of the Hon'ble Bombay High Court in the case of Lloyds Steel Industries Ltd had dealt with a different situation prevailing under Rule 49 of the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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