2012 (3) TMI 416 - HC - Central Excise

Summary

Issues involved: Review application u/s Civil Miscellaneous Appeal, non-payment of excise duty, compliance with Rule 3 of Cenvat Credit Rules, entitlement to pay excise duty on monthly basis, belated payment, judgment of Bombay High Court.

Summary:

Issue 1: Compliance with Rule 3 of Cenvat Credit Rules
The Civil Miscellaneous Appeal was filed by the Revenue challenging the order of the CESTAT, Chennai Bench, which allowed the appeal filed by the assessee. The Court found that the assessee had failed to pay excise duty for each consignment, leading to non-compliance with sub-rule (4) of Rule 3. The Court held that the judgment of the Bombay High Court would not be applicable in this case, as it was rendered as per specific rules of the Cenvat Credit Rules. Consequently, the appeal filed by the Revenue was allowed.

Issue 2: Entitlement to pay excise duty on monthly basis
The review petitioner/assessee contended that they were entitled to pay excise duty on a monthly basis, which was not brought to the notice of the Court during the initial hearing. It was highlighted that a notice had been issued for payment of excise duty, and the assessee had paid the duty, albeit belatedly. The counsel argued that the order of the assessing officer was based on a law that came into force after the relevant period. Considering these aspects, the Court found that the order suffered from an error and required review.

Conclusion:
After considering the submissions and lack of counter-affidavit from the respondent, the Court allowed the review application. The initial order was reviewed, and the Civil Miscellaneous Appeal filed by the Revenue was dismissed. The Court confirmed the order of the Tribunal, noting that the assessee was entitled to pay excise duty on a monthly basis for the relevant period.