9911796707
TMI Blog2006 (2) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2001. During the period August, November and December, 2001, the appellants defaulted on payment of duty on due date and, as such, Deputy Commissioner vide his order dated 10-2-2002 withdrew the said facility as per Rule 8 and directed the appellants to pay duly on consignment basis through PLA for a period of two months from the date of receipt of the order. 2. In terms of the above order passed by the Deputy Commissioner, the appellants cleared the goods by paying duty on consignment basis. However, instead of debiting the same through account current, they made the payment through Cenvat account. Accordingly, they were issued two show cause notices dated 16-4-2003 and 9-7-2003 proposing confirmation of demands of duty and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said decision was subsequently followed by the Tribunal in the case of Commissioner of Customs & Central Excise, Bhubaneshwar-II v. Durowires (P) Ltd., reported in 2004 (168) E.L.T. 111 (Tri - Kolkata). Subsequently in the case of Elson Packaging Industries Pvt. Ltd. v. Commissioner of Central Excise, Surat - 2004 (169) E.L.T. 171 (Tri. - Mumbai), the issue was again examined with reference to the earlier decisions as also in the light of the various Board's Circular throwing light on the expression "account current" and it was again held that debit of duty from Cenvat account instead of PLA during the forfeiture would attract penal provision. Reference was made to the Tribunal's decision in the case of Kolhapur Steel Ltd. v. CCE, Pune- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we find that in para 3 of the said judgment, it has been observed as under :- "para 3 "the ld. Counsel appearing for the Revenue is unable to place before us any provision to show that the petitioner is not entitled to utilise the Cenvat credit for payment of Central Excise duty on the clearance of final product" As such, it is clear from the above observation of the Hon'ble Bench that their attention not drawn to the provisions of Rule 8 of Central Excise Rules, 2002 laying down that during the period of forfeiture, an assessee shall be required to pay Central Excise duty on consignment basis by debit to the account current and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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