TMI Blog2016 (2) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... In such situation, we find no reason for ordering payment of such amount by cash only and taking re-credit of the debited amount. The assessee's right to use cenvat credit to discharge the central excise duty even during the defaulted period was examined and decided by the Hon’ble High Court of Madras in the case of Malladi Drugs & Pharmaceuticals Ltd. [2015 (5) TMI 603 - MADRAS HIGH COURT] . The Hon’ble High Court observed that right to pay the duty by using cenvat credit that on accrued amount cannot be denied unless it is a case of illegality or irregular credit. Considering the above position, we find no justification for the Revenue to insist on payment of all the dues for the payment of all the defaulted amount by cash only when th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal Authority confirmed the demand to be paid in cash and imposed penalty of ₹ 1,00,000/- on the appellant. He also ordered that on payment of this amount by cash, the amount already debited in cenvat credit account will be restored to the appellant. 2. Ld. Counsel for the appellant submits that the proceedings against them were not sustainable. Admittedly, they have defaulted in payment of central excise duty on a monthly basis during the period April, 2005 to July, 2005. However, they have full paid the defaulted amount on 26.07.2005, 12.08.2005 and 5.10.2005 by debit entries in their cenvat credit account. The provisions invoked by the Revenue viz. Rule 3(4) of the Cenvat Credit Rules, 2004 is not applicable in this case as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... full amount partly by cash and partly by credit. The payment by credit which accrued after the impugned period was disputed by the Revenue. In this connection, we find that the Board vide Circular dated 15.12.2003 clarified that the amount of duty outstandings shall be treated as recoverable arrears of revenue and all permissible action under the law including action under Section 11 of the Central Excise Act, 1944 should be taken. Considering this amount, which was liable to be paid, but not paid in time, was later paid by the appellant using partly the credit available in their accounts. In such situation, we find no reason for ordering payment of such amount by cash only and taking re-credit of the debited amount. The assessees right to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
