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2014 (6) TMI 414 - AT - Central ExciseDefault in payment of duty - violation of Rule 8(3A) - Utilization of cenvat credit during period of default - Clandestine removal of goods - Held that:- Clearances made by the applicant were not clandestine removals because the clearances were reported in the returns filed by applicant. The applicant was liable to pay duty in cash, when they were in default. Any payment made through Cenvat credit can be taken as proper discharge only when no bar as per Rule 8(3A) of Central Excise Rules, 2002 was operating. If payment was made through credit after they came out of defaulting period it would be acceptable as proper discharge. The payment prior to coming out of default cannot be refused for the reason that it was paid earlier but for the fact that interest has to be paid. Therefore, we order the applicant to calculate interest on clearances during the default period till Mar.09 to be calculated for each clearance from date of clearance to the end of defaulting period for payments made through Cenvat and deposit such amount as pre-deposit for admission of the appeal - Stay granted partly.
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