2014 (4) TMI 90 - AT - Central Excise

Denial of CENVAT Credit - Delay in making duty payment - Held that - For the delay in deposit as above the appellant suffered adjudication with the levy of duty with penalty under Rule 25 of Cenvat Credit Rules, 2002. So also interest followed - Subject to verification of deposit particulars as stated above, duty element is confirmed. Cenvat credit, if any, reversed be restored back to appellant s account. Penalty is confirmed and interest to follow - Decided partly in favour of assessee.

Summary

Issues involved:
1. Failure to deposit duty by due date
2. Adjudication with levy of duty, penalty, and interest
3. Verification of deposit particulars
4. Restoration of Cenvat credit

Analysis:

1. The case involves the appellant's failure to deposit duty by the due date for the month of February 2009. The duty amount of Rs. 44,362/- was deposited on 15.4.2009, which led to the appellant losing the right to set off duty liability from Cenvat credit. As a consequence, a duty element of Rs. 4,89,860/- for the period April to September 2009 had to be paid in cash. The appellant confirmed the deposit was made in terms of a challan dated 10th May, 2012, with the revenue yet to verify the deposit.

2. Due to the delay in deposit, the appellant faced adjudication resulting in the levy of duty amounting to Rs. 4,89,860/- along with a penalty of Rs. 50,000/- under Rule 25 of Cenvat Credit Rules, 2002. Additionally, interest was imposed as well.

3. The judgment confirms the duty element subject to the verification of deposit particulars provided by the appellant. Any reversed Cenvat credit, if applicable, is to be restored back to the appellant's account. The penalty imposed is confirmed, and interest is to follow as per the decision.

4. The appeal is disposed of based on the above terms, and a miscellaneous application for an extension of stay is dismissed in light of the appeal's disposal. The judgment was dictated and pronounced in the Open Court by the presiding judge, Shri D.N. Panda.