2015 (10) TMI 1842

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....y, June and July,2000. Hence, they were directed to pay the duty amount on consignment basis. They paid the duty liability through cenvat credit and subsequently there was change in law to provide that punishment will continue till the default is fully discharged and during that period duty has to be paid through PLA on consignment basis. The contention of the appellant assessee is that the change of law will not apply to them. This facility to make monthly payments was withdrawn by the Deputy Commissioner of Central Excise vide C.No. V/1/13/2000-VC dated 23.08.2000 for a period of two months commencing from 31.08.2000. Further a Show Cause Notice was issued by the Deputy Commissioner and the matter was adjudicated upon and by order dated 2....

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....ules, 2002 and the goods cleared under payment of duty in Cenvat should not be construed to have been cleared without payment of duty and interest and penalty be not levied. The appellant in his reply dated 04.08.2003 to the SCN put forth his objections. During personal hearing the appellant filed written submissions assailing the SCN and requested the Department to drop all further proceedings contemplated under the SCN. The department by the impugned order rejected the contentions of the appellant and aggrieved by the said order, the appellant is constrained to approach the Honble Tribunal. Hence the present appeal. 2. The orders passed by the Tribunal in the miscellaneous petition in stay order No. 325/2005 dated 01.03.2005 and the m....

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....ion that the petitioner has not made out a strong case for waiver of pre-deposit of duty and penalty, while considering the statutory appeal before the CESTAT. Hence, the writ petitions are dismissed. No costs. Consequently, connected miscellaneous petitions are also closed." The appellant however filed writ appeal before the Hon'ble High Court and the Honble High Court vide order dated 29.04.2009 passed order directing the appellant M/s. Star Drugs and research Labs. Ltd., to furnish bank guarantee of Rs. 26.00 lakhs to the respondent i.e. CCE, Chennai-III within two weeks from 29.04.2009 and accordingly, the appellants will not be required to make the pre-deposit as directed by CESTAT. The appellant assessee had subsequently furnished....

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....iod. He further submitted that Rule 8(3A) of the CER, 2002 restrains the assessee from using cenvat credit until the entire outstanding demand including the interest is paid. He further submitted that the consequence for non-payment of excise duty is also indicated in the very same section as it provided that in case of failure to pay the amount, it shall be deemed that such goods have been cleared without payment of duty and the consequence of penalties as provided in the rules would follow. Further, the explanation is only for making the position clear. He relied on the decision of the Hon'ble High Court of Madras in the case of Unirols Airtex Vs. CCE, Coimbatore 2013 (296) ELT 449 (Mad.). 7. After hearing both the sides and on perusal....