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Issues:
Challenge to order of Deputy Commissioner of Central Excise regarding excise duty payment scheme and Cenvat credit utilization. Analysis: 1. Payment Scheme Amendment: The petitioner contested the amendment introduced by the Central Government in April 2000, changing the payment of excise duty from consignment basis to fortnightly installments. The rules required duty payment by specific dates and outlined consequences for defaults, including forfeiture of installment facility. 2. Cenvat Scheme: The petitioner highlighted the Cenvat scheme, where duty paid on inputs is credited to Cenvat Account and debited when final products are cleared. The Ministry issued notifications restricting Cenvat credit utilization for specific fortnights only, aiming to prevent misuse and double taxation. 3. Notification Dispute: The petitioner argued that the notification introducing restrictions was not effectively communicated to the public, citing lack of availability for sale. However, the Ministry's circular clarified the amendment, and the petitioner's subsequent actions were based on the amended rules. 4. Legal Defenses: The respondents contended that the petitioner misused Cenvat credit against the notification, leading to defaults. They emphasized the statutory compliance requirements and the absence of corrective actions by the petitioner despite notifications and circulars. 5. Judicial Precedents: Both parties relied on legal precedents to support their arguments. The petitioner cited cases emphasizing effective publication of notifications, while the respondents referred to judgments validating the enforcement of notifications upon publication without further dissemination. 6. Court's Decision: After considering all submissions and legal references, the Court upheld the Deputy Commissioner's order, stating it was in line with the Act and Rules. The petition was dismissed, and each party was directed to bear their own costs. The Court found no merit in the petitioner's contentions regarding the notification's public availability, affirming the validity of the order. This detailed analysis covers the key issues raised in the legal judgment, providing a comprehensive overview of the arguments presented by the parties and the Court's decision in the matter.
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