2017 (9) TMI 1554

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.... for the Revenue ORDER Per: Shri P. K. Choudhary This appeal has been filed by the appellant against the Order-in-Appeal No.19/HAL/2016 dated 15.03.2016 passed by Commr. of Central Excise (Appeal I), Kolkata. 2. Under the above Order-in-Appeal dated 15.03.2016, inter-alia, the lower appellate authority has disposed of the appeal filed by the appellant on the ground that the mandatory p....

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.... (i) of the Central Excise Act is required to be made in cash or the same can be paid by utilizing CENVAT credit account maintained by the appellant. For better appreciation, Section 35F (i) is reproduced below : "Section 35F. : Deposit of certain percentage of duty demanded or penalty imposed before filing appeal. - The Tribunal or the Commissioner (Appeals), as the case may be shall not enter....

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....missibility of CENVAT credit , if found to be inadmissible, the ultimate action is to reverse the CENVAT credit availed. There is no need to make any predeposit in cash. Similarly, in case of demand of duty, if CENVAT credit is permissible for payment of duty, the same can always be debited from CENVAT account maintained by an assessee. The lower appellate authority could have a view if debit of t....

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.... under Section 35F (i) cannot be made from CENVAT credit account, is not correct interpretation of law as long as the CENVAT credit is permitted for utilization under Rule 3 (4) of the Cenvat Credit Rules, 2004. Accordingly, I direct the ld.Commissioner (Appeals) to decide the issue on merit without insisting on any further predeposit from the appellant. Consequently, I set aside the impugned orde....