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2016 (11) TMI 227 - CESTAT NEW DELHIViolation of provisions of Rule 8(3A) - default in duty payment of more than 30 days - all the subsequent clearances were to be made on cash payment only without utilizing cenvat credit - whether the Revenue's claim that clearances subsequent to March, 2006 made by utilizing cenvat credit shall be deemed to have been cleared without payment of duty in terms of the said rules justified? - Held that: - the appellants have fully discharged the default amount, by 16.06.2006 in cash, with applicable interest for the delayed payment. In such situation to hold that the clearances subsequent to March, 2006 as non-duty paid clearance only on the ground that the cenvat credit has been used for payment of such liability, is not legally sustainable - The ratio of the Hon’ble Supreme Court’s decision in the case of Jayaswal Neco Ltd. [2015 (8) TMI 404 - SUPREME COURT] referred where interpreting the terms paid excise duty for each consignment by debit to Account Current held that it could not be said to be the only mode of payment of duty during this period. Payment through cenvat credit is also a valid mode of payment - there is no violation of provisions of Rule 8(3A) - appeal allowed - decided in favor of appellant.
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