TMI Blog2009 (7) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... days and the payment particulars are as under :- On 12-12-2007 Rs. 31,60,000/- On 15-12-2007 Rs. 20,00,000/- On 20-12-2007 Rs. 15,00,000/- Total Rs. 66,60,000/- The appellants paid interest also for the delayed payment on 26-12-2007 amounting to Rs. 94,177/-. 2. As per the provision of Rule 8(1) of the Central Excise Rules, 2002 (Rules for short), every assessee is required to pay the duty by 5th of the following month and as per Rule 8(3A) of the Rules, if the assessee defaults in payment of duty beyond 30 days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in the said Rule (1) and sub-rule 4 of Rule 3 of Cenvat Credit Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llants were undergoing serious financial difficulties during the period and therefore, they could not be deposit the amount in time. He submits that there was only a short delay of one month and the appellants had paid the duty amount with interest thereon. He also cited several decisions in support of his contention that the amount debited in Cenvat account should be treated as amount debited in account current. He also submits that there are Tribunal s decisions holding that amount debited in Cenvat account is to be treated as debit in the account current and once duty is paid by debit in the Cenvat Credit account, the appellants cannot be made to pay duty in cash since it would amount to double payment. As regards financial difficulties, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts discussed above and also the reproduction of the content of Rule 8(3A) of the Rules, which is quite clear that once the appellants fail to pay duty and interest within a month from the date of default, automatically the consequences follow and no one can plead ignorance of law. Further, burden of payment of duty is to be made consignment wise without utilizing the Cenvat credit is on the assessee. The Central Excise Law places full faith on the assessees and they are required to assess the goods themselves and pay the duty and clear the same after completing the necessary formalities. In this case, once there was default, the assessee was bound to pay duty from PLA only and having not done so, they have to face the consequences. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir investment in listed shares is intact. There investments in mutual fund and interests from Bank are sufficient for payment of excise duty. Therefore, we do not find any justification to grant unconditional stay and direct the appellants that full amount of duty demanded be deposited. Further, we also take note to the fact that as soon as the appellant would deposit the entire duty amount, they would get back the Cenvat credit in account and, therefore, they would not suffer any financial loss. We take note to the fact that the default as occurred and from the Rule, they are liable to penalty for default. The reasons for default and justification shall have to be gone into at the time of final hearing. Therefore, we consider that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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