2014 (3) TMI 349

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....uty during the period September 2008 to November 2008. Though they filed returns showing duty liability they did not pay the amount which they were required to pay and thus had become defaulters. When they were defaulters as per the provisions of Rule 8(3A) of Central Excise Rules, 2002, they were required to pay excise duty only through cash whereas they contravened this rule and continued to pay....

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.... relies on the following decisions of the Tribunal:     (i) Solar Chemferts Pvt. Ltd. Vs. CCE, Thane - I - 2012 (276) ELT 273     (ii) Baba Viswakarma Engg. Co. (P) Ltd. Vs. CCE - 2012 (278) E.L.T. 68 (Tri. - Del.) 3. Opposing the prayer the learned AR for Revenue submits that the rule clearly specifies that when the assessee is default, the duty liability ha....

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....     (i) Pee Dee Polymers Vs. CCE - 2012 (278) ELT 647 4. I find there are conflicting decisions on this issue. During the defaulting period there is no bar on taking credit. There is bar only on utilization of credit. Whenever a demand is confirmed against an assessee, the assessee can pay the duty liability through cash or CENVAT credit so long as there is no specific prohibit....

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....cumulated after default. Here the dispute is whether the credit accumulated during defaulting period could be used for paying duty after coming out of default. 5. At any rate, it is obvious that there will be some interest liability on the applicant since the duty paid through Cenvat credit during defaulting period cannot be taken as proper discharge of duty. This interest amount is not seen qu....