2009 (7) TMI 413

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....DR, for the Respondent. [Order]. - The appellant is manufacturing Petroleum Jelly and organic/inorganic chemicals and were availing Cenvat credit of duty paid on the inputs. During the period May, 2007 to September, 2007, the appellants defaulted in payment of duty which was required to be paid by 5th of the following month. The duty in respect of such manufacture was paid from Cenvat account t....

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....alled for. For the above proposition, he relied upon the Hon'ble Mumbai High Court's decision in case of M/s. Lloyds Steel Industries Ltd. v. UOI - 2005 (183) E.L.T. 351 (Tri.-Bom.), laying down that utilizing Cenvat credit to pay duty on clearance of final product is as goods as making payment by debiting from current account. He, accordingly, passed the following order: "(i) Since the duty am....

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....t of duty. He, accordingly, confirmed the duty demand along with interest and enhanced the penalty in terms of Section 11AC of the Act read with Rule 25 of Central Excise Rules. The said order is impugned before us. 4. Learned advocate agrees to pay the duty out of PLA, subject to reversal of entry in Modvat account. At the time of passing of stay order, the appellants was directed to deposit d....