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2023 (1) TMI 1103 - AT - Central ExciseLevy of Central Excise Duty - Compounded levy scheme - breach of rule 8(3A) of Central Excise Rules, 2002 - HELD THAT:- The provisions of rule 8 of Central Excise Rules, 2002, as prevalent in September and October 2008, had been breached and that the appellant herein upon being aware of the breach had not made good the deficiency immediately but awaited the report of audit in 2009. On the surface, it would appear that the discharge of duty liability in November 2009 did not suffice to restore the privilege of clearance of goods by debit of CENVAT credit account as the appellant continued to be in breach for the period till then. It is not recorded anywhere that the debit had ceased at any stage before surrender of the registration certificate in December 2010. We are inclined to take note of the developments between the takeover of the undertaking in November 2008 leading to subsequent closure including addition in the ‘account current’ with no record of the same having been refunded to appellant thereafter. It would also appear that the plea of the appellant on incorrectness of demand under section 11A of Central Excise Act, 1944 beyond the normal period as well as the drawing of attention of central excise authorities to the deficiency in the returns had been ignored as is evident from the finding of the adjudicating authority that the memorandum of understanding (MoU) between the erstwhile management and the appellant, which was relevant, had not been furnished. To remedy these deficiencies, it would be necessary for the adjudicating authority to take stock of these facts and circumstances noted supra, to enable which it would be appropriate to set aside the impugned order and remand the matter back to the adjudicating authority. Appeal disposed off.
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