TMI Blog2016 (3) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... ilising the CENVAT credit is not proper and justified, in view of the judgement of Hon'ble Gujarat High Court in the case of Indsur Global Ltd. Vs. Union of India (2014 (12) TMI 585 - GUJARAT HIGH COURT ). Since the central excise duty for the above period was paid by the appellant along with interest, it is of the view that confirmation of interest liability again on the appellant is also not in conformity with the Cenvat statute. It is an admitted fact on record that there was no intention on the part of the appellant to evade the payment of duty. Non-payment of central excise duty within the due date was due to the constraint in arrangement of funds, which cannot be attributable to fraud, collusion, wilful mis-statement, etc. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated 04.11.2009 in confirming the duty amounting to ₹ 13,68,865/- which was to be paid in cash and imposed penalty of ₹ 50,000/- under Rule 25 of the Central Excise Rules, 2002. In appeal, the ld. Commissioner (Appeals) vide impugned order dated 26.05.2010 has upheld the adjudged demand confirmed in the adjudication order. Besides, pursuant to the appeal filed by Revenue, the ld. Commissioner (Appeals) has held that the respondent therein was liable to pay interest on the amount of duty confirmed by the adjudicating authority. 2. I have heard Shri Aalok Arora, ld. counsel appearing for the appellant and Shri RK Gupta, ld. Departmental Representative appearing for the Revenue and perused the records. 3. The issues inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 3 of Cenvat Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilising the Cenvat Credit till the date the assessee pays the outstanding amount including the interest thereon; 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. On perusal of the said sub-rule, it reveals that a restriction has been imposed therein, which is to the effect that in case of default in payment of duty beyond 30 days from the due date, the assessee is not entitled to utilise CENVAT credit and to pay the excise duty for each consignment at the time of removal of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er for recovery of the duty already paid by utilising the CENVAT credit is not proper and justified, in view of the judgement of Hon'ble Gujarat High Court in the case of Indsur Global Ltd. Vs. Union of India (supra). Since the central excise duty for the above period was paid by the appellant along with interest, I am of the view that confirmation of interest liability again on the appellant is also not in conformity with the Cenvat statute. 7. It is an admitted fact on record that there was no intention on the part of the appellant to evade the payment of duty. Non-payment of central excise duty within the due date was due to the constraint in arrangement of funds, which cannot be attributable to fraud, collusion, wilful mis-statem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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