TMI Blog2016 (10) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... the whole of dues within one month, therefore, the appellant is entitled to utilize their cenvat credit account for payment of duty with effect from 24.11.2001 - the appellant started utilising the account current with effect from 18.1.2002, in that circumstance, the appellant has not contravened the provisions of Rule 8(3A) of the Central Excise Rules, 2001 by utilizing the credit account for payment of duty with effect from 18.1.2002, therefore, the demand of ₹ 1,69,38,241/- is not sustainable - Demand set aside - no penalty imposable. Manipulation of account current - fraudulent credit taken in account current on TR-6 challan and an amount of ₹ 1,69,38,241 has been utilized by the appellant from their cenvat credit account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t impugned order demanding duty of ₹ 1,63,00,000/- on account of credit taken fraudulently in their account current without support of valid TR-6 challan and utilized towards payment of central excise duty. A demand of ₹ 1,69,38,241/- was also confirmed on account of duty paid by utilizing their account current and various penalties imposed on the appellants, Aggrieved with the said order, the appellants are before us. 2. The facts of the case are that by an order dated 24.9.2001 in terms of Rule 8 of Central Excise Rules, 2001, the facility of fortnightly payment of duty and payment through RG 23A Part II for a period two months or till the deposit of defaulted amount which ever later was withdrawn. Intelligence was gathered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring to the facility of fortnightly payment of duty. It was also alleged that the appellant manipulated the account current by showing that they paid more than the TR-6 challan. Therefore, the total amount of default ₹ 3,32,38,241, out of this an amount of ₹ 1,63,00,000 pertains to fraudulent credit taken in account current on TR-6 challan and an amount of ₹ 1,69,38,241 has been utilized by the appellant from their cenvat credit account for payment of duty. Consequently, the said amount also sought to be demanded. In these set of facts, the show cause notice was issued and the same was adjudicated, the demand of duty alongwith interest were confirmed as the appellant already paid the said amount in dispute the same was app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat as per order dated 24.9.2001, the appellants were restrained from utilising their credit payment of duty and also was required to pay duty on consignment basis and without making defaulted payment, the appellant started taking fraudulent credit in their PLA, In that circumstance, utilisation of credit account for payment of duty by the appellant is to be denied. Consequently, the demand of ₹ 1,69,38,241/- is rightly confirmed by the adjudicating authority. He further submits that the appellant has taken fraudulent credit in their PLA account without supplying the copy of their TR-6 therefore, penalties are imposable on the appellants. 5. Heard the parties and considered the submissions. 6. On careful consideration of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve taken the excess credit in their PLA without making the payment through TR-6 challan on 9.3.2002 and 15.3.2002 alongwith interest. These facts are not in dispute and the show cause notice has been issued to the appellant on 22.12.2005 by invoking the extended period of limitation. As the appellant has not disputed the payment of duty ₹ 1,63,00,000/- alongwith interest and have admitted the same, in that circumstance, the issue before us is to be considered for imposition of penalties on the appellants. The sole contention of the appellant is that they were receiving the communication from their head office with regard to the payment of duty through TR-6 challan telephonically wrongly and therefore, they have taken the credit i.e .d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
