2018 (5) TMI 540

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....on order. 2. Heard both sides and perused the records. 3. On perusal of records, it transpires that the respondent herein is a manufacturer of cement and clears the same on payment of duty. During the period July, 2006 to November, 2007 the Panyam Cements and Minerals (main respondent) herein discharged the duty liability towards the final products cleared by presenting cheque along with TR-6 challans to the bank. Subsequently, during the investigation it was noticed that all these cheques were dishonoured and subsequently honoured on representation of the cheques. The main respondent discharged the interest liability on such delayed credit of duty liability in the Government treasury. Show cause notice was issued for invocation of Pr....

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....nd the cheques were realized subsequently which would indicate that there was default in duty. 5. Learned Counsel submits that they have already discharged duty liability, albeit belatedly but paid the interest. It is his submission that provisions of Rule 8(3A) of Central Excise duty has been struck down by the Hon'ble High Court of Gujarat in the case of Indsur Global Ltd., [2014 (310) ELT 833; Precision Fasteners Ltd., [2015 (316) ELT 595] and Hon'ble High Court of Madras in the case of AR Metallurgicals Pvt. Ltd., [2015 (322) ELT 49] and Hon'ble High Court of Punjab and Haryana in the case of Sandley Industries [2015 (326) ELT 256]. He fairly submits that the judgment of Indsur Global Ltd., of the Gujarat High Court is stayed by the Hon....

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....unt, as was explained by the Chief Manager of State bank of India, Nandyal vide their letter dated 14.02.2008 detailed above. Thus, it is seen in the case that the clearing mechanism of cheques was meddled with by the assessee and the bank authorities and it was ensured that all the cheques that were presented to the designated bank were realized albeit belatedly. When this meddling was noticed by the Department, the assessee had paid the interest of Rs. 21,46,255/- due to the delay in realization of the aforesaid cheques and the genuineness of all the transactions were certified by the authorities of State Bank, Nandyal as detailed above. Thus, it is seen that the assessee had squared-up the loss to the exchequer owing to delay in realizat....

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.... a sick unit referred to BIFR and the present management clearing all dues of duty including arrears of Rs. 400 lakhs after their taking over the present unit and since none of the cheques and the instances of cheques being realized belatedly having stopped in November, 2007 with no recurrence in the later period have to be considered. They have since emerged as a major revenue paying unit, more over the delay has occurred on account of acute financial crisis the sick unit was facing during the currency of the case. The assessee has also paid differential interest of Rs. 21,46,255/- towards interest for delayed realization of cheques. Therefore, the case needs to be viewed in pragmatic terms rather than in a very technical manner. Further, ....