2016 (11) TMI 227

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....s of Rule 8(1) of Central Excise Rules, 2002, they are required to discharge duty liability for the month of March, 2006 by 31.03.2006. Due to financial difficulty, they did not make payment on that day. The said duty was paid through PLA on 5.5.2006, 31.5.2006 and 16.6.2006. Proceedings were initiated against the appellant for violation of provisions of Rule 8(3A), which stipulates that when there is a default in duty payment of more than 30 days, all the subsequent clearances were to be made on cash payment only without utilizing cenvat credit. As such, it was alleged that clearances subsequent to March, 2006 made by utilizing cenvat credit shall be deemed to have been cleared without payment of duty in terms of the said rules. Accordingl....

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....s applicable during the relevant time upto 1.6.2006 an order is required to be passed by the Asstt. Commissioner to forfeit the facility to pay duty in monthly instalments under sub-rule (1). On issue of such order, during the period covered by the said sub-rule, the assessee shall be required to pay excise duty for each consignment by debit to the current account. We note that in the present case, there is no such order forfeiting the facility of monthly payment issued by the Asstt. Commissioner. The Hon'ble Supreme Court in the case of Jayasmal Neco Ltd.  2015 (322) ELT 587 (SC) interpreting the terms paid excise duty for each consignment by debit to Account Current held that it could not be said to be the only mode of payment of dut....