9911796707
TMI Blog2001 (10) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the appellants manufacture perfumery compounds and discharge excise duty on fortnightly basis as per Rules 49, 57AB and 173G of the Central Excise Rules; that on account of shortage of funds and non-availability of CENVAT credit, they were not able to discharge the duty liability of Rs. 34,80,000/- for the second fortnight of February, 2001; that as soon as funds became available and CENVAT credit accrued to them, they paid the duty which had fallen into arrears on 20-3-2001 by debitting from PLA (Rs. 7.28 lakhs); that the Deputy Commissioner under Order No. 39/2000-01, dated 11-4-2001 directed them to discharge the entire amount of arrears of duty in cash from P.L.A. He, further, submitted that Rule 173G(1)(a) allows payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(d) of the Central Excise Rules; that no such provision has been made therein; that the said Rule is very clear that in case of default in payment of duty, the defaulter shall be liable to pay the outstanding amount alongwith interest and in case the duty still remains unpaid for more than 30 days, the manufacturer would forfeit the facility of paying duty in instalments. He emphasised that nowhere in Rule 173G it is required that the defaulted amount shall be paid by debit in PLA only. 3. Countering the arguments, Shri Mewa Singh, learned SDR, submitted that the provisions of proviso to Explanation (1B) of Rule 57AB are very specific and clear; that according to proviso the CENVAT credit shall be utilized only to the extent such c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s duty liability by debitting PLA or by utilising CENVAT credit. Section "AA" of Chapter V of the Central Excise Rules contains provision relating to availment and utilisation of CENVAT credit. Sub-rule (1B) of Rule 57AB provides that CENVAT credit may be utilized for payment of any duty of excise on any final products manufactured. The Proviso to sub-rule puts a restriction on the utilisation of CENVAT credit. According to the Proviso : ".................the CENVAT credit shall be utilised only to the extent such credit is available on the fifteenth day of a month for payment of duty relating to the first fortnight of the month, and the last day of a month for payment of duty relating to the second fortnight of the month." 5. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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