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2014 (3) TMI 488 - AT - Central ExciseDefault in payment of duty - restriction on utilizing cenvat credti under Rule 8(3A) - Violation of first proviso to sub-rule 4 of Rule 3 of Cenvat Credit Rules, 2004 - Assessee showed that duty was paid in cash through Account Current even though no such amount was paid by them. On 25.11.2010, they adjusted the said amount from the Credit of Inputs etc. - Non clearance of the consignments paying the excise duty for each consignment at the time of removal without utilizing Cenvat credit - Clearance of the goods without paying consignment-wise duty - Held that:- Rule 8(3A) is specifically prohibits utilization of cenvat credit during the period in which default continues, we are of the view that even when the said amount is required to be paid as arrears of revenue the same have to be paid in cash without utilization of the cenvat credit. Any other interpretation will make the restriction relating to utilization of credit meaningless. It is settled law that what is not allowed directly cannot be allowed/claimed indirectly. Board's circular dated 28 th March, 2012 will not be applicable in view of reasons stated earlier. We, therefore, hold that the appellants are required to pay an amount of ₹ 8,00,09,346 which is equivalent to the cenvat credit utilized during the period 6.12.2010 to 4.7.2011 in cash. They will, however, be free to take cenvat credit of equivalent amount and utilize it for future clearances. - Demand alongwith interest confirmed - Decided against the assessee.
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