9911796707
TMI Blog2013 (8) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... riod utilising the cenvat credit lying in balance in violation of the provisions of the Central Excise Rules, 2002. 2. After hearing both sides for some time on the stay petition, I find that the issue is no more res-integra, hence after allowing the stay petition filed by the appellant, I take up the appeal itself for disposal. 3. As already stated hereinabove, the appellant herein had debited an amount of Rs.1,62,182/during the period 1.05.11 to 11.06.11 in cenvat account for the clearances. Prior to this material period, appellant had defaulted payment to the Government of India, as provided by Rule 8 of the Central Excise Rules, 2002. Such default was also made good by them. The Revenue Authorities have issued a show cause notice for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing very small, penalty of Rs.5000/-, is excess, should be reduced proportionately. 5. Ld. D.R. reiterates the findings of the lower authorities. 6. I have considered the submissions made by both sides and perused the records. 7. It is undisputed that the appellant during the period 1.5.11 to 11.6.11 had utilised the cenvat credit available with them for discharge of the duty liability which they are not supposed to do so having defaulted in making the payment to the government under Rule 8 of the Central Excise Rules, 2002. It is also undisputed that the said amount of Rs.1,62,182/was paid by them through TR-6 challan in cash on being pointed out. 8. The issue to be decided in the case in hand is whether the appellant is required to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be due discharge of duty. Interest will be payable so long as there is no proper discharge of duty. This is a consequence from Act but that will follow even if it is not mentioned in the Rules. That is to say duty paid during the defaulting period will be proper discharge once the default in payment from PLA, for the month of Dec. 2006 in this case, is made good and applicable interest is paid. With the result the only consequence that arises in this case is payment of interest and penalty. But interest will be payable from the date of each clearance to the date on which the default is made good that is 20-4-2007. This is so because once the defaulted amount is paid, thereafter the payment made through Cenvat become proper even if it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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