Court directs release of attachment order on Central Excise Duty, pending payment compliance.

The court allowed the petition challenging an attachment order for failure to pay Central Excise Duty through the P.L. Account. The petitioner's willingness to pay in cash or from the P.L. Account if re-credit to the CENVAT account was permitted led to a directive to file an undertaking and make the payment by a specified date. Upon compliance, the attachment was to be lifted by the respondent authority. Re-credit to the CENVAT account was contingent on actual payment. The judgment favored the petitioner, resolving the duty payment dispute and attachment issue without imposing costs.

---

---

Issues:
Challenge to order of attachment for failure to make payment of Central Excise Duty through P.L. Account, dispute over utilization of CENVAT credit for duty payment, communication between petitioner and respondent authorities regarding payment, readiness of petitioner to make payment in cash or from P.L. Account if re-credit to CENVAT account is allowed.

Analysis:
The petition challenges an attachment order due to the petitioner's failure to pay Rs.24,29,387 through the P.L. Account for Central Excise Duty. The petitioner paid the duty with interest for September 2006 on 3/1/2007 instead of October or November 2006, leading to a dispute with respondent authorities. The authorities questioned the use of CENVAT credit for duty payment in November and December 2006, discovered during an audit inspection in April 2008. Subsequent communications demanded payment of Rs.23,95,653 + education cess in cash or from P.L. Account, culminating in the attachment order of 9/3/2009.

The affidavit-in-reply referenced a communication from the petitioner to the authorities, expressing willingness to pay from P.L. Account if re-credit to CENVAT account is allowed. The petitioner sought clarification on the duty already paid and the possibility of re-crediting the CENVAT account, as advised by the Assistant Commissioner of Central Excise, Anand.

Acknowledging the petitioner's readiness to pay within fifteen days by cash or from P.L. Account if re-credit to CENVAT account is permitted, the court directed the petitioner to file an undertaking by 2/4/2009 and make the payment by 16/4/2009. Upon compliance, the respondent authority was instructed to lift the attachment within three working days. Re-credit to the CENVAT account was allowed only after actual payment in cash or from P.L. Account.

The judgment allowed the petition on the specified terms, with no costs imposed. The decision resolved the dispute over duty payment and attachment, emphasizing the petitioner's commitment to settle the outstanding amount subject to the conditions outlined by the court.

---