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2018 (12) TMI 364 - AT - Central ExciseDefault in payment of duty - denial of right to use the cenvat credit account for payment of duty - the entire case of the Revenue is that on account of default in payment of duty for the period from August, 2007 to November, 2007 the appellant have lost their right to use the cenvat credit account, for payment of duty - Rule 8(3A) of the Central Excise Rules - Time Limitation - penalty. Held that:- The said issue stands considered by the Tribunal in the latest decision in the case of M/s Bakewell Agro Ltd. and others V/s CCE, Meerut-I [2018 (12) TMI 156 - CESTAT ALLAHABAD], it stands held that the assessee was entitled to use the cenvat credit for payment of duties of their final product even during the period of default. Time limitation - Held that:- The appellant debited their cenvat credit account at the instance of the visiting officers in December, 2007. Such entries made by the appellant were indicated to their Range Officer as well. No objection was raised by the Revenue at that point of time. A show cause notice issued after a period of 3-4 years by invoking the extended period cannot be uphold - As such apart from the merits of the case, the demand is also barred by limitation. Penalty - Held that:- It is seen that a further demand to the tune of ₹ 9,651 and of ₹ 25.158/- stands confirmed which were also debited by the appellant from their Cenvat Credit account. Inasmuch as the said demand is accepted by the appellant, we find no reasons to set aside the same. However, penalty on the said two grounds are set aside. Appeal allowed - decided in favor of appellant.
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