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TMI Blog2013 (8) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... ith interest and the appellant shall be entitled to submit their reply to the show cause notice and thereafter the respondents shall pass orders on merits and in accordance with law - Assesse should be put on some terms before the Department was directed to issue a show cause notice to the assesse - before the quantifying the total amount the department ought to have issued a show notice to the appellant clearly setting out the period of default, the amount payable, the interest payable on the said amount and afford an opportunity to the appellant. - Writ Appeal No.1607 of 2013 & M.P.No.1 of 2013 - - - Dated:- 13-8-2013 - R. Banumathi And T. S. Sivagnanam,JJ. For the Appellants : Mr. K. Jayachandran For the Respondents : Mr. S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the goods removed from the factory during a month shall be paid by the 6th day of the following month, if the duty is paid electronically through internet banking, by 5th day of the following month, in any other case. The appellant citing financial crises, did not remit the Central Excise Duty, within the time prescribed under Rule 8 of the Rules for different spells from September 2011 to June 2012. While making the payment belatedly with interest, the appellant utilised the Cenvat credit of duty paid on the inputs and other eligible credits used in the manufacture of final products The respondents did not give credit to the duty paid by using the Cenvat credit and consequently, it reflected in the accounts as non-payment. Thereafter, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of the petitioner therein afresh and pass orders in terms of Rule 8 (3-A) of the Rules with its explanation appended thereto. The learned counsel further submitted that the entire duty together with interest has been paid utilising the Cenvat credit, which is permissible and the appellant should be afforded an opportunity to submit his objections and this Court should interfere with the action initiated by the Department and direct the Department to issue show cause notice to the appellant to hear the appellant and thereafter pass orders on merits and in accordance with law. 7. Mr.S.Thirumavalavan, learned counsel appearing for the respondents submitted that there is no violation of principles of natural justice as the assessee/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y beyond thirty days from the due date as prescribed in Sub Rule 1 of Rule 8, then notwithstanding anything contained in Sub Rule (1) and Sub Rule (4) of Rule 3, the assessee is required to pay the excise duty for each consignment at the time of removal, without utilising the Cenvat credit till the date the assessee pays the outstanding amount including interest thereon and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequence of penalties as provided in the Rules shall follow . 11. The Department by their communications dated 8.3.2012 and 21.6.2012, called upon the appellant to regulrise their accounts and report about the compliance in the matter of payment of dutie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above facts and also taking note of the appellant's communication dated 13.7.2012, in which the appellant appears to have stated that they will not utilise the Cenvat credit till the liquidation of the default dues, we are of the view that the appellant should be put on some terms before the Department is directed to issue a show cause notice to the appellant. 14. Accordingly, the Writ Appeal is disposed of by directing the appellant to pay a further sum of Rs.5,00,000/-, within a period of eight weeks from the date of receipt of a copy of this order. On receipt of such payment, the respondents shall issue a show cause notice to the appellant clearly indicating the defaulted amount together with interest and the appellant shall be enti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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