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2014 (9) TMI 734 - AT - Central ExciseImposition of Penalty - Violation of Rule 8(3A) - Held that:- Rule 8 (3A) categorically states that the assessee shall pay excise duty for each consignment at the time of removal, without utilizing the Cenvat credit till the assessee pays the outstading amount including interest thereon. The consequence for non-payment of excise duty is also indicated in the very same section as it provided that in case of failure to pay the amount, it shall be deemed that such goods have been cleared without payment of duty and the consequence of penalties as provided in the rules would follow. Rule 8(3A) does not permit the assessee to pay the excise duty by using the Cenvat credit. The provision retrained the assessee from using Cenvat credit till the entire outstanding amount including interest is paid. The explanation is only for the purpose of making the position clear. violation of Rule 8(3A) of the Central Excise Rules, 2002 are clearly proved. Provisions Rule 8(3A) are self-contained requiring penal actions. Penalty is imposable - Decided against assessee.
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