2003 (9) TMI 164

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Member (T)]. - In this appeal, filed by M/s. Jayswals Neco Ltd., the issue involved is whether interest can be demanded from them. 2. Shri B.L. Narsimhan, learned Advocate, submitted that the appellants manufacture Pig Iron and scrap of iron; that as per the requirement of the Central Excise Rules, they are required to pay duty on the goods cleared in the first fortnight by 20th of the month a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....paid from Cenvat Credit account. Learned Advocate, further, submitted that Cenvat Credit account is also considered as account current for the purpose of payment of duty; that there is no restriction for utilising the Cenvat Credit for payment of duty under the Cenvat Credit Rules at all and hence the payment of duty through Cenvat Credit was in order. He also contended that the Commissioner has c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....G(1)(d) cannot be demanded. He also mentioned that as the appellants paid around Rs. 7 crore in cash through PLA towards duty, the small amount of Rs. 31 lakh (approx.), utilised from Cenvat, should not warrant imposition of interest; that moreover, this is a case of bona fide mistake. 3. Countering the arguments, Shri Virag Gupta, learned DR, submitted that sub-rule (e) of Rule 173G(1) of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....est shall be liable to be paid by the appellants under sub-rule (d) of Rule 173G(1) of the Central Excise rules. He emphasised that the Commissioner has given a specific finding in the impugned order to the effect that "so long as the actual revenue is not credited in Government account by cash payment through TR-6 Challans, the undue financial accommodation to the defaulter continues and under th....