9911796707
TMI Blog2014 (3) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... .8.06 directing the assessee to pay the excise duty for each consignment by debit to the PLA for the clearances of excisable goods made for a period of four months and also not to utilise Cenvat credit for payment of excise duty during the said period, as per provisions of Rule 8(3A) of Central Excise Rules, 2002. However it was observed by Revenue that in contravention of provisions of Rule 8(3A) of Central Excise Rules, 2002 appellants utilised Cenvat credit during 8/06 to 2/07 without clearing outstanding amount including interest. Hence a Show Cause Notice dated 21.5.07 was issued demanding the duty paid in Cenvat account by cash along with interest and penalty. 2. Respondents submitted that order dated 25.8.06 suspending the facility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... future months; that they should have paid on consignment wise on their own immediately after 30 days of default; that arrears cannot be paid through Cenvat credit account during the forfeiture period ordered by JAC and confirmed the demand of duty in cash along with interest and penalty. 4. Respondent filed an appeal before the Commissioner (A) and the Commissioner (A) allowed the appeal. Revenue is aggrieved with this decision and is in appeal. 5. Heard both sides. I find that the Commissioner (A) has recorded very clear findings on the issue and I may also have to repeat whatever he has said if I have to write an order. Instead of doing that I feel that it would be appropriate to reproduce the same, since I agree with the observations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 3 of Cenvat credit rules,2004, the assessee shall be required to pay excise duty for each consignment 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 the consequences and penalties as provided in these rules shall follow." Thus wordings in the Rule such as duty for each consignment at the time of removal without utilising the Cenvat credit refers to clearances of goods to be made during suspension period and not to the clearances already made in the past. Therefore I find that restriction imposed in the rule not to utilise Cenvat credit is applicable to clearances to be made during suspension period and it is not applicable to payment of out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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