2019 (8) TMI 422

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....redit Rules, 2004 inasmuch as they had wrongly utilized an amount of Rs. 10,77,571/- towards payment of defaulted central excise duty for the earlier months. The department was of the view that the amount so utilized as credit has to be recovered under Rule 14 of CENVAT Credit Rules, 2004 along with interest for which Show Cause Notice was issued. After due process of law, the original authority confirmed the demand, interest and imposed penalty. The same was upheld by the Commissioner (Appeals). Hence this appeal. 2. On behalf of the appellant, ld. counsel Ms. D. Naveena appeared and argued the matter. She submitted that the appellant had defaulted the payment of excise duty for the months of September 2015, October 2015 and January 201....

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....o that. It is also submitted by him that an appeal has been filed against the decision of the Hon'ble High Court of Gujarat before the Apex Court and leave has been granted in the said matter. 4. Heard both sides. 5. The issue is whether the appellants are liable to pay the demand, interest and the penalty confirmed by the authorities below alleging contravention of proviso to sub-rule (4) of Rule 3 of CENVAT Credit Rules, 2004. For better appreciation, the said proviso is reproduced as under:- "while paying duty of excise or service tax, as the case may be, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month or quarter, as the case may be, for payment of duty or ta....

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....ay be taken against excise duty on the final product manufactured on the very day that it becomes available. Thus, as such, credit under the Cenvat Scheme is "as good as tax paid". If any decision is needed on the aforesaid decision of the Hon'ble Supreme Court in the case of Dai Ichi Karkaria Ltd. (supra) and Eicher Motors Ltd. (supra) are required to be referred to. In the aforesaid decision, it is specifically held that utilization of legally availed Cenvat credit is a right vested in the manufacturer the moment duty paid inputs or input services are received by him because there is no one to one correlation between input/inputs services on one hand and the final excisable product on the other hand. Therefore, proviso to Sub Rule (4) of ....