TMI Blog2014 (10) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... d out earlier, there is no discretion vested with the authority to allow the petitioner to avail Cenvat credit till they clear dues. Once they clear dues, admittedly, the benefit is accrued to the petitioner, if there is no other legal impediment for doing so - Decided against assessee. At this juncture, learned Senior Counsel for the petitioner submitted that already ₹ 77 lakhs has been recovered from the petitioner and therefore, the petitioner may be given an opportunity to approach the respondent with the request to pay the remaining amount in installments or by granting reasonable time and in the meantime, no coercive steps should be initiated against the petitioner. - while dismissing the appeal, liberty granted to the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty. 4. On perusal of ERI returns, it was pointed out that the petitioner utilized Cenvat Credit of ₹ 2,17,25,877/- for the payment of Excise duty for the period from April, 2013 to February, 2014, which is in contravention of Rule 8(3A) of Central Excise Rules, 2002. Therefore, the petitioner was directed to pay the said amount in cash along with appropriate interest latest by 28.03.2014, failing which recovery action under Section 11 of the Central Excise Act, 1944, would be taken 5. The petitioner submitted a representation dated 27.03.2014, stating that they have sufficient balance in the Cenvat account for payment of BED dues and the same was adjusted from Cenvat account. It was further submitted that there are several dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Senior Counsel for the petitioner that in that process more than ₹ 77 lakhs has been recovered by the respondents as against the total demand of ₹ 2,17,25,877/-. Learned Senior Counsel for the petitioner submitted that sufficient time may be granted to the petitioner to effect payment, since they have sufficient credit. However, availability of credit alone is not a factor for the purpose of availing Cenvat credit. In terms of Rule 8(1) of the Central Excise Rules, 2002, the duty liability for any month has to be paid on or before 6th in case of online payment or 5th of the succeeding month. In terms of sub rule (3A) thereof, if there is any failure to pay the duty within the due date and if the duty is not paid even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner submitted that already ₹ 77 lakhs has been recovered from the petitioner and therefore, the petitioner may be given an opportunity to approach the respondent with the request to pay the remaining amount in installments or by granting reasonable time and in the meantime, no coercive steps should be initiated against the petitioner. 10. Accordingly, while dismissing the writ petition, liberty is granted to the petitioner to submit a representation to the 2nd respondent within a period of 10 days from the date of receipt of a copy of this order, requesting for time by duly indicating as to what date the balance amount will be paid. If any such representation is submitted, the 2nd respondent shall consider the same in ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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