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2014 (6) TMI 487 - AT - Central ExciseDuty demand - Utilization of lapse credit for payment of duty - Assessee contends that inasmuch as the duty liability arose in the month of March, 2008 itself and if they would have paid the same at the time of raising the invoices they were in a position to utilize the said credit. The duty could not be paid in the month of March, 2008, inadvertently and as such, the credit should be allowed to be utilized for payment of duty subsequently in the month of June 2008 - whether the credit which has already lapsed as on 1.4.08, can be used for payment of duty in the month of June, 2008, even in respect of clearance effected prior to 1.4.2008. Held that:- in terms of provisions of Rule 8 of Central Excise Rules, 2002, the duty liability in respect of goods cleared in March, 2008 is to be discharged in the month of March, 2008 itself. If the assessee defaulted in payment of duty beyond 30 days from the due date, he is debarred from utilizing the Cenvat credit. As per the appellants himself, the duty liability arose in the month of march, 2008 and the same was discharged beyond the period of 30 days in June, 2008. As such, consequence of violation of Rule 8(3A) of the Central Excise Rules, 2002 would flow resulting in denial of utilization of Cenvat credit along with interest and the penal provisions inasmuch as such goods have to be held as having been cleared without payment of duty - Assessee is directed to discharge their duty liability in cash along with interest - However, Penalty is set aside - Decided partly in favour of assessee.
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