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2013 (12) TMI 1398 - HC - Central ExciseGoods detained because of non-payment of duty - Manner of payment of duty under Rule 8(3A) - Whether the petitioner was correct in making use of the Cenvat credit for the purpose of discharging the duty liability – Held that:- There is no question of invoking the Cenvat Credit Rules, 2004 in its entirety except for understanding the meaning of the term ‘duty’ or ‘duty of excise’ - the rigour of Section 8(3A) operates notwithstanding anything contained in sub-rule (1) and (4) of Rule 3 of Cenvat Credit Rules - Sub-rule 4(b) of Cenvat Credit Rules permits utilisation of Cenvat credit for payment of duty of excise on any final product - This provision makes the position very clear that Cenvat credit cannot be used as a matter of right for payment of duty of excise, in case the assessee defaults in payment of duty before the cut off period under Rule 8(3A) of Central Excise Rules, 2002. The purpose of explanation that the expression ‘duty’ or ‘duty of excise’ shall also include the amount payable in terms of the Cenvat Credit Rules, 2004, would not amount to a permission for utilising the Cenvat credit for paying the excise duty - Rule 8(3A) is very specific when it provided that the entire duty should be paid without utilising the Cenvat credit - There is no question of utilising the explanation for the purpose of using the Cenvat credit for paying the outstanding duty amount – Thus, the assessee is liable to pay the excise duty in accordance with the Central Excise Rules, 2002 with interest for the belated period and there is no provision for utilising the Cenvat credit for such belated payment - The petitioner is liable to pay the entire duty amount with interest without utilising the Cenvat credit - decided against Petitioner.
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