Tribunal allows appeal, sets aside payment direction, grants relief to appellant

The Tribunal set aside the direction to make payment of duty from the PLA account, as duty had already been paid from the Cenvat account. The appeal was allowed, providing consequential relief to the appellant. The absence of the appellant's counsel was accepted, and the appeal was restored. The judgment was pronounced in Open Court.

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Issues involved: Appeal against direction to make payment of duty confirmed with interest and penalty.

The appeal challenges the direction to make payment of entire duty confirmed with interest as well as penalty of Rs. 5000. The counsel's contentions are twofold: first, that the direction is contrary to an earlier observation in the impugned Order, and second, that duty remained correctly discharged.

The proceedings arose from a delay in the discharge of duty liability on a fortnightly basis by the appellant. The Asst. Commissioner stopped the appellant's facility to pay duty from the Cenvat account due to this delay. Despite this, the appellant continued to pay duty from Cenvat Credit. The Dy. Commissioner considered these payments incorrect and made a fresh duty demand, leading to the appeal before the Commissioner. The appellant argued that the direction to make payment of duty from PLA is incorrect as duty had already been paid. It was also contended that a second payment of duty from PLA, taking the same as credit in the Cenvat account, would be unnecessary and cause undue hardship to the appellant. The Tribunal agreed, noting that Cenvat account is equivalent to PLA concerning the debit of Central Excise duty.

Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief to the appellant. The explanation for the counsel's absence was accepted, and the appeal was restored. The judgment was dictated and pronounced in the Open Court.

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