TaxTMI 
TaxTMI 
2019 (6) TMI 259
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....ust, 2008 and alleged default for the month of February 2008 to May, 2008 is covered by Excise Appeal No.139 of 2011 and the same for the month of June 2008 to August 2008 is covered by Excise Appeal No.138 of 2011. 2. Brief facts of the case are that the appellants were engaged in the manufacture of Collar Joint Pipe, Kiln Shell and other machinery parts falling under Chapter 73 & 84 of First Schedule to Central Excise Tariff Act, 1984. For the month of January 2008 appellant had discharged part of their duty liability on 15 February, 2008 by debiting their cenvat account to the tune of Rs. 1,80,674/-. For the month of January 2008 remaining duty liability were discharged by the appellant through PLA payments on 26 February, 2008 and 12 M....
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.... Rules 2002 since the said amount of Rs. 1,80,674/- was paid through cash on 07 October, 2008. 3(a). Show Cause Notice dated 02 March, 2009 was adjudicated through Order-In-Appeal dated 31 December, 2009 wherein all proposals in the show cause notices were confirmed and penalties were imposed. Aggrieved by the said order appellant preferred appeal before Commissioner (Appeals). The learned Commissioner (Appeals) reduced penalty of Rs. 3 lakhs and did not interfered with the confirmation of demand through the Order-In-Appeal dated 15 November, 2010 which is impugned in Excise Appeal No.139 of 2011. (b). The said show cause notice dated 26 June, 2009 was adjudicated through Order-In-Original dated 29 December, 2009 through which proposals....
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....t of Rs. 1,80,764/- as on 15 February, 2008 was in accordance with the settled position of law and therefore if any default exists it exists only from 05 March, 2008 to 12 March, 2008. Further, he has submitted that as held by Hon'ble Gujarat High Court the cenvat credit availed after expiry of a particular month was admissible for payment of central excise duty for earlier month and therefore for the month of January, 2008 entire central excise duty liability was fulfilled by 12 March, 2008. Therefore, the default remained only from 05 March, 2008 to 12 March, 2008. Further, he has submitted that as per the table of payment through PLA and Cenvat provided in the said show cause notice dated 02 March, 2009, there was no debit from cenvat cr....
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....t High Court. 7. I have carefully gone through the records of both the appeals and submissions made during the hearing and submission made by learned counsel for appellant through written submissions dated 20 may, 2019. I note that Hon'ble Gujarat High court in the said case of Advance Surfactants India Ltd. has held that there is no one to one co-relation between raw material and finished goods and therefore to restrict utilization of credit earned up to the last date of duty payment is contrary to the principals of Cenvat Credit Rules and therefore the Hon'ble High Court has held that Sub-Rule (4) of Rule 3 of Cenvat Credit Rules, 2004 is ultra vires. As reported at 2018 (360) E.L.T. A208 (S.C.) and as submitted by learned counsel for ap....