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2016 (3) TMI 160 - AT - Central ExciseLiability to pay duty defaulted from the current account/in cash - the duty has already been paid through CENVAT credit account - Whether the interest is liable to be demanded from the appellant as the amount of duty on consignment basis has been paid without any delay by utilising the CENVAT credit and penalty can be imposed ? - Held that:- In the present case, since both the authorities below have admitted that the duty has been paid by the appellant on clearance of each consignment by utilising the CENVAT credit, in my opinion, such payment is in conformity with sub-rule (3A) of Rule 8 and thus, order for recovery of the duty already paid by utilising the CENVAT credit is not proper and justified, in view of the judgement of Hon'ble Gujarat High Court in the case of Indsur Global Ltd. Vs. Union of India (2014 (12) TMI 585 - GUJARAT HIGH COURT ). Since the central excise duty for the above period was paid by the appellant along with interest, it is of the view that confirmation of interest liability again on the appellant is also not in conformity with the Cenvat statute. It is an admitted fact on record that there was no intention on the part of the appellant to evade the payment of duty. Non-payment of central excise duty within the due date was due to the constraint in arrangement of funds, which cannot be attributable to fraud, collusion, wilful mis-statement, etc. Therefore, in view of the judgement of Hon'ble Gujarat High Court in the case of CC Vs. Saurashtra Cement Ltd. [2010 (9) TMI 422 - GUJARAT HIGH COURT ], imposition of penalty under Rule 25 of Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1994 is not justified. - Decided in favour of assessee
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