2013 (9) TMI 417

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....e duty of Rs.3,76,855/- for the period from April 2009 to March 2010 as per the provisions of Rule 8(3A) of the Central Excise Rules, 2002 which was actually shown in ER-1 return to have been paid through their PLA. The amount of Rs.3,76,855/- was not paid by the appellants leading to default in terms of Rule 8(3A) of she Central Excise Rules, 2002. The appellant was also required to discharge the duty from the PLA consignment wise thereafter. Appellant relied upon the judgment of Solar Chemferts Pvt. Ltd. Vs. CCE Thane - 2012 (276) ELT 273 (Tri. - Mumbai) and also relied upon the judgment of Manipal Springs Ltd. Vs. CCE Mangalore - 2012 (286) ELT 628 (Tri. - Bang.). Ld. A.R. on the other hand reiterated the order of Commissioner (Appeals) ....

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....ncluding interest thereon; and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow. " 3. It is clear from the above provisions that if assessee defaults in payment of duty beyond 30 days from the due date than the assessee shall be required to pay excise duty for each consignment without utilising the cenvat credit till the date the assessee pays the due amounts including interest thereon. In view of the clear cut provisions of Rule 8(3A) of the Central Excise Rules, 2002 it is evident that he cannot utilise the cenvat credit for payment of central excise duty. It has to be held that as per the provisions of Ru....

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....cable interest is paid. With the result the only consequence that arises in this case is payment of interest and penalty. But interest will be payable from the date of each clearance to the date on which the default is made good that is 20-4-2007. This is so because once the defaulted amount is paid, thereafter the payment made through Cenvat become proper even if it is paid before the date on which defaulted amount is paid. So we do not find it necessary to ask the Appellant to pay duty in cash and take re-credit of equivalent amount debited in Cenvat Credit account earlier.    14. Rule 8(3A) prescribes only consequences mentioned in the Rules. As already discussed the consequences prescribed are confiscation of goods and pena....