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2016 (2) TMI 820 - AT - Central ExciseNon payment of duty - Interest payment made from Cenvat credit account - Held that:- It is not under dispute that the appellants cleared the goods from February, 2006 to March, 2008 without payment of duty. They did not file any quarterly/monthly returns. The only explanation given by them is that they have financial difficulties. It is not in dispute that the said amount of duties were collected from their customers. It was their duty to deposit clearance of the goods on the due date. Under these circumstances, we do not find any merit in the appeal either for duty, interest or penalty. Cenvat Credit can be used only for the purpose specified in the Cenvat Credit Rules. Interest payment cannot be made from Cenvat credit account. As far as the penalty on the Director is concerned, we find from the records that he was also concerned with the Central Excise as also other financial matters. The fact that they had collected duty but not deposited the duty is not disproved. He cannot absolve himself from the penalty. However, keeping in view the overall facts and circumstances of the case, we reduce the penalty on the Director Shri Atul Ashok Purandare from ₹ 10 lakhs to ₹ 2 lakhs, except the above modification, both the appeals are dismissed.
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