2014 (11) TMI 1270 - AT - Central Excise

Default in payment of Central Excise duty beyond the period prescribed under Rule 8(3A) of Central Excise Rules 2002 - liability of the appellants to pay the duty in cash but the appellants paid by utilizing CENVAT credit - HELD THAT - The issue is no longer res integra and this Tribunal in the case of SOLAR CHEMFERTS PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE THANE-I 2011 (6) TMI 640 - CESTAT MUMBAI has already held that in such cases of default it is not necessary for the appellants to deposit the entire amount utilized as CENVAT credit in cash but it is sufficient if the interest is paid. The learned counsel agrees to deposit the interest and penalty which may be imposed by this Tribunal. Accordingly the appellant is directed to calculate the interest and pay the same and also penalty is reduced to Rs. 5, 000/-. Appeal allowed in part.

Summary

The Appellate Tribunal CESTAT Bangalore ruled on default in payment of Central Excise duty beyond the prescribed period. Appellants can pay duty using CENVAT credit, with interest and reduced penalty of Rs. 5,000. The decision aligns with previous cases Solar Chemferts Pvt. Ltd. and Kumar's Metallurgical Corporation Ltd.