9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 92 - AT - Central ExciseDefault in payment of Central excise duty - show cause notice requiring the payment of excise duty on each consignment in cash, without utilizing Cenvat Credit until payment of outstanding amount together with interest - Held that - As under Sub-Rule (1) of Rule 8 of Central Excise Rules, 2002 if an assessee, failed to pay the duty within the time stipulated i.e. on the 6th day of following month if it is paid electronically through internet banking or on the 5th day of following month in any other case, and a further period of 30 days under Sub-Rule (3A) is disentitled to make use of the Cenvat Credit - Following decision of Manjunatha Industries vs. CCE, Bangalore 2013 (4) TMI 534 - KARNATAKA HIGH COURT - appellant has not made out a case for total waive of pre-deposit of the dues - Conditional stay granted.
Issues: Application for waiver of pre-deposit of duty, interest, and penalty under Rule 8 (3A) of the Central Excise Rules, 2002.
Analysis: 1. The applicant sought waiver of pre-deposit of duty, interest, and penalty amounting to Rs. 3,70,422/- based on default in payment of duty on due dates. The applicant utilized Cenvat Credit for duty payment during the default period. 2. The applicant argued that the defaulted payment was subsequently made, and interest paid in cash, making the utilization of credit during the default period compliant with Rule 8 (3A) of the Central Excise Rules, 2002. 3. The Revenue cited judgments from the Hon'ble Karnataka High Court and Hon'ble Madras High Court, emphasizing that there is no provision for utilizing Cenvat Credit for belated payments. The applicant utilized credit amounting to Rs. 2,49,963/- during the default period. 4. Considering the decisions of the High Courts, it was held that the manufacturer is debarred from using credit during the default period. The applicant was directed to pay Rs. 2,49,963/- in cash within eight weeks. Upon this payment, the pre-deposit of the remaining dues was waived, and recovery stayed for the appeal hearing. 5. The compliance report was scheduled for 21.3.2014, as per the court's directive.
|
