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TMI Blog2014 (2) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... ount on 23.7.08 and thereafter he would be entitled to utilize the credit for payment of duty in respect of subsequent clearances - Following decision of Meenakashi Associates vs. CCE, NOIDA [2012 (6) TMI 275 - CESTAT, NEW DELHI] - Decided against Revenue. - Appeal No. 4066 of 2012 SM - FO ORDER NO . 50259/2014 - Dated:- 17-1-2014 - Ms. Archana Wadhwa, J. For the Appellant : Shri U K Srivastava, DR For the Respondent : Shri Sudhir Malhotra JUDGEMENT Per Archana Wadhwa: Being aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. 2. I have heard Shri U K Srivastava., learned DR appearing for the Revenue and Shri Sudhir Malhotra, learned advocate appearing for the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest on 23.7.2008. Similarly, they defaulted in payment of duty on the goods cleared during the month of March 2008 beyond 30 days from due date and final payment of duty defaulted was made on 17.7.2008 alongwith interest on 23.7.2008. Since the appellant defaulted in payment of duty during the above period beyond 30 days from the due dates, as such they were required to pay duty for each consignment at the time of removal without utilizing Cenvat credit from the period 05.04.2008 to 22.07.2008 as the duty actually stood paid in full i.e. with interest on 23.7.2008 as per sub-rule (3A) of rule 8 of the Rules. However, the appellant did not follow this procedure and did not pay Central Excise duty through PLA and continued to utilize Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long with interest at the rate specified by the Central Government vide notification under section 11AB of the Act on the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount. Rule 8(3A) of the Rules stipulated that if the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilizing the CENVAT credit till the date the assessee pays the outstanding amount including interest thereon; and in the event of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te assessee pays the outstand amount including interest. Admittedly the respondents had paid the amount on 23.7.08 and thereafter he would be entitled to utilize the credit for payment of duty in respect of subsequent clearances. 8. Tribunal in the case of Meenakashi Associates vs. CCE, NOIDA [2012-TIOL-587-CESTAT-DEL] has held that prohibition in terms of Rule 8(3A) gets lifted the moment the default is made good along with appropriate interest on defaulted amount and normal situation is restored and assessee is again entitled to take credit. Similar is the decision of the Tribunal in the case of CCE, Raipur vs. Moonlight Alloys P Ltd [2007 (208) ELT 395 (Tri-Del)] wherein it stands held that once outstanding amount is paid, payments nee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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