Duty default under rule 8(3A) bars Cenvat credit use and supports a reasoned pre-deposit order.

Where an assessee defaults in payment of duty beyond the prescribed period, rule 8(3A) requires subsequent duty to be paid consignment-wise through PLA and bars utilisation of Cenvat credit during the continuing default. On the facts noted, the appellant had continued to use Cenvat credit despite the default, so the Tribunal's prima facie view supporting pre-deposit and its refusal to modify that order were held fair and proper. The Court also rejected reliance on a different miscellaneous order because the factual basis was materially different. No substantial question of law arose, and interference with the Tribunal's order was unwarranted.

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Issues: Whether the Tribunal was justified in directing pre-deposit and refusing modification in view of the appellant's default in payment of duty under rule 8(1) of the Central Excise Rules and the bar under rule 8(3A) against utilising Cenvat credit after such default.

Analysis: The appellant had failed to pay monthly duty by the prescribed due date, attracting rule 8(3A), which mandates payment of duty consignment-wise through PLA and without utilising Cenvat credit once default continues beyond 30 days. The Tribunal's original pre-deposit order and the order refusing modification were based on a prima facie finding of such breach. The Court found the Tribunal's reasoning fair and proper, noted that the appellant had actually utilised Cenvat credit despite default, and held that the reliance on a different miscellaneous order was inapplicable because the factual basis there was materially different.

Conclusion: The Tribunal was justified in its pre-deposit order and in rejecting modification, and the appeal did not raise any substantial question of law.

Ratio Decidendi: Once an assessee defaults in payment of duty beyond the prescribed period, rule 8(3A) requires payment through PLA without utilising Cenvat credit, and interference with a reasoned pre-deposit order is unwarranted in the absence of any substantial question of law.

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