TaxTMI 
TaxTMI 
2016 (3) TMI 160
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....of the Central Excise Rules, 2002. For the periods of default, i.e., 05.07.2008 to 24.07.2008, 05.09.2008 to 30.09.2009 and 05.11.2008 to 09.11.2008, the appellant had paid the duty amounting to Rs. 13,68,865/- from its CENVAT credit account. However, the Show Cause Notice was issued to the appellant seeking recovery of the duty amount again on the ground that the appellant did not pay the duty on the goods cleared by them on consignment basis and without utilising the CENVAT credit. The matter was adjudicated by the Addl. Commissioner of Central Excise vide order dated 04.11.2009 in confirming the duty amounting to Rs. 13,68,865/- which was to be paid in cash and imposed penalty of Rs. 50,000/- under Rule 25 of the Central Excise Rules, 20....
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....t along with interest at the specified rate for the period starting with the first day after the due date till the payment of actual outstanding amount. If the assessee defaults in payment of duty beyond 30 days from the due date, the embargo created in sub-rule (3A) of Rule 8 shall be applicable. The said sub-rule is extracted herein below:- "(3A) If the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and sub-rule (4) of Rule 3 of Cenvat Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilising the Cenvat Credit till the date the assessee pays the outstanding a....
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....e(3A) of Rule 8 after it was declared ultra vires and unconstitutional is that the assessee can pay the excise duty for each consignment at the time of removal, even by utilising the CENVAT credit, till the date the outstanding amount including interest thereon is paid. 6. In the present case, since both the authorities below have admitted that the duty has been paid by the appellant on clearance of each consignment by utilising the CENVAT credit, in my opinion, such payment is in conformity with sub-rule (3A) of Rule 8 and thus, order for recovery of the duty already paid by utilising the CENVAT credit is not proper and justified, in view of the judgement of Hon'ble Gujarat High Court in the case of Indsur Global Ltd. Vs. Union of Ind....