TaxTMI 
TaxTMI 
2017 (10) TMI 551
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....are that the appellant could not paid the duty during the period from Sep 2008 to June 2009 in time and the same was paid along with interest in the month of August 2009, partly by utilising Cenvat account and partly through PLA. As per Rule 8(3A) of Cenvat Excise Rules, 2002, the assessee cannot utilise Cenvat credit account during the period of default for payment of duty. In that circumstance, show cause notice was issued to the appellant for denying utilisation of Cenvat credit account for payment of duty during the defaulted period and demand of interest was confirmed and equivalent amount of penalty was imposed. On appeal, the penalty was reduced to Rs. 10 Lakh. Aggrieved from the said order, the appellant is before me. 3. Ld. Cons....
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....sed under the Rule were unreasonable to the extent that it only required a default, irrespective of the extent or nature of the default, and consequently, excise ditty had to be paid without availing Cenvat credit. The High Court further reasoned it leads to a situation so harsh and a position so unenviable that it would be virtually impossible for assessee who is trapped in the whirlpool to get out of his financial difficulties. It is quite apart from being wholly reasonable, being irrational and arbitrary and therefore, violative of Article 14 of the constitution. It prevents him from availing credit of duty already paid by him. The reasoning of the Gujarat High Court in Indsur Global Limited Vs. Union of India - 2011 (310) ELT 833, quote....
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....efeasible. It should also be noted that there is no co-relation of the raw material and the final product; that is to say, it is not as if credit can he taken only on a final product that is manufactured out of the particular raw material to which the credit is related. The credit may be taken against the excise duty on a final product manufactured on the very day that it becomes available. 18. It is, therefore, that in the case of Eicher Motors Limited Vs. Union of India (1999) 106 ELT 3, (1999 AIR SCW 563 - AIR 1999 SC 892) this Court said that a credit under the Modvat scheme was as good as take paid." 7. The Revenue has argued that the Supreme Court has entertained a Special Leave Petition against the judgment of the G....
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.... exist in law so long as it exists, it cannot be said that the appeal which has been disposed of by the said order has not been disposed of and is still pending. We are, therefore, of the opinion that the passing of the interim order dated February 21, 1991 by the Delhi High Court staying the operation of the order of the Appellate Authority dated January 7, 1991 does not have the effect of reviving the appeal which had been dismissed by the Appellate Authority by its order dated January 7, 1991 and it cannot be said that after February 21, 1991, the said appeal stood revived and was pending before the Appellate Authority." 8. It is apparent therefore, that an order keeping in abeyance the judgment of a lower Court or authority doe....