TMI Blog2016 (2) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant's factory and directed the appellants to debit the amount of ₹ 10,09,097.00 from PLA, which was debited and re-credited by the appellant in the same month. The Adjudicating Authority observed that the appellant wrongly utilized the amount of ₹ 44,09,029.00 from the Cenvat Credit Account in contravention of Rule 8 (3A) of the Valuation Rules, 2002. The Hon'ble Gujarat High Court in the case of Indsur Global Ltd. vs Union of India (2014 (12) TMI 585 - GUJARAT HIGH COURT ) held that the condition contained in Sub Rule (3A) of the Rule 8 for payment of duty without utilizing Cenvat Credit till an assessee pays the outstanding amount including interest is declared unconstitutional. Therefore, the portion "without utilizi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detected the mistake on 05.12.2013, they paid the amount of ₹ 44,462.00 alongwith interest of ₹ 2,850.00 through PLA and reported the same in monthly ER-I return November 2013. On 03.04.2014 the Central Excise Officers visited the appellant's factory and recorded the statements of the employees of the appellant company, on the issue of non payment of ₹ 44,462.00 for the month of June 2013 and contravention of Rule 8 of the said Rules, amongst others. At the instance of the said Central Excise Officers, the appellant debited an amount of ₹ 10,09,097.00 for alleged contravention of the said Rules. The appellant again re-credited the said amount of ₹ 10,09,097.00 on 28.04.2014 in the PLA as erroneously debited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13.06.2013 to 13.12.2013, there was sufficient balance in their Cenvat Credit Account and PLA, as under:- Sr. No. Last day of the month Closing balance (Rs.) Cenvat PLA Total 1 30.06.2013 16,90,232 34,95,690 51,85,922 2 31.07.2013 12,58,306 31,74,690 44,32,996 3 31.08.2013 19,55,935 32,04,690 51,60,625 4 30.09.2013 14,59,547 35, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Sub Rule (3A) of Rule 8 of the said Rules 2002 shall be rendered invalid. So, the demand of amount paid by utilizing CENVAT credit during the defaulted period is not sustainable. 5. It has also ordered to recover the amount of ₹ 10,09,097.00, which the re-credited in PLA Account for contravention of Rule 8 (3A) of the Central Excise Rules, 2002. We find that in view of the decision of the Hon'ble Gujarat High Court in the case of Indsur Global Ltd (supra) the reversal of credit during the defaulted period from Cenvat Account is valid, and therefore, the demand of amount of ₹ 10,09,097.00 for contravention of Rule 8 (3A) of the said Rules cannot be sustained. The Learned Authorised Representative submits that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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