2003 (4) TMI 150

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....s required to pay the duty on consignment basis. The said duty was paid by them but instead of debiting the same from their PLA account it was debited from their Cenvat account. He fairly agrees that in terms of provisions of Rule 173G(1)(e), during this period they were required to debit the amount from their PLA and were not entitled to use their Cenvat credit account. For the said purpose they were issued a show cause notice and duty of Rs. 19 lakhs (approx.) was confirmed against them along with imposition of personal penalty of identical amount. The adjudicating authority also directed them to pay the interest on the said amount of Rs. 19 lakhs. On an appeal against the above order, they did not succeed before Commissioner (Appeals). ....

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....penalties as provided in the Central Excise Rules shall follow. As such, he submits that by not paying duty out of the PLA account, it has to be deemed as if the goods have been cleared without payment of duty and the appellants are liable to penalties as provided by the said Rules. 4. We have considered the submissions made from both the asides. The facts in the present case are not disputed. The appellant's facility to pay duty on fortnightly basis was withdrawn on account of their failure to pay the duty by due date. As such, as per the provisions of Rule 173G(e) if the manufacturer defaults, the facility to pay the dues in instalments will be forfeited for the period of two months and during that period, the manufacturer shall be requi....