2015 (6) TMI 261

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....when there is a default in payment of excise duty which continues for a period beyond thirty days from due date then the assessee has to pay excise duty on each consignment at the time of removal without utilising the Cenvat credit till the date the assessee pays the outstanding amount including interest thereon envisages under Rule 8(3A) of the Central Excise Rules, 2002. The said view was taken by this Tribunal in the light of the decisions of the Hon'ble Karnataka High Court in the case of Manjunatha Industries Vs. CCE, Bangalore - 2014 (308) E.L.T. 7 (Kar.) and of the Hon'ble High Court of Madras in the case of Unirols Airtex Vs. CCE, Coimbatore - 2013 (296) ELT 449 (Mad). However, since the adjudicating authority did not follow....

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....trary to that, is required to be regarded as an error which is apparent on record and rectification of such an error within period permissible under law is required to be affected. 4. The learned Commissioner (AR) appearing for the revenue on the other hand submits that the order relied upon by the Counsel has been passed more than four months after the Tribunal passed the impugned order and since the Tribunal's decision is based on the decision of the Hon'ble High Court of Karnataka and the Hon'ble Madras High Court in the cases cited supra, there is no error which requires rectification. He also relies on the Larger Bench decision in the case of CCE, Chandigarh Vs. Kashmir Conductors - 1997 (96) ELT 257 (Tribunal) wherein i....

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....at Rule 8(3A) of Central Excise Rules, 2002 is ultra vires. It is only the Gujarat High Court which has taken that particular view. This view of the Gujarat High Court is also contrary to the decision of the Hon'ble Karnataka High Court and the Madras High Court wherein it has been held that in case of default in payment of duty within due date and the defaults continues for a period beyond thirty days from the due date, the utilisation of Cenvat credit is nullity in law and therefore, the duty liability has to be discharged on the subsequent clearance in cash. Further in the Kashmi Conductors case cited supra, another Large Bench of this Tribunal has held that the decision of a High Court is applicable only within the jurisdiction and ....