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TMI Blog2014 (3) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... st an assessee, the assessee can pay the duty liability through cash or CENVAT credit so long as there is no specific prohibition against such payment through CENVAT credit. Such prohibition exists as per Rule 8(3A) only when the assessee is in default. Once they come out of the default by paying the defaulted amounts in cash, they can pay the duty liability using CENVAT credit. The fact that they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount which they were required to pay and thus had become defaulters. When they were defaulters as per the provisions of Rule 8(3A) of Central Excise Rules, 2002, they were required to pay excise duty only through cash whereas they contravened this rule and continued to pay duty liability partly through cash and partly through CENVAT credit. They made good the entire default by December 2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ELT 273 (ii) Baba Viswakarma Engg. Co. (P) Ltd. Vs. CCE - 2012 (278) E.L.T. 68 (Tri. - Del.) 3. Opposing the prayer the learned AR for Revenue submits that the rule clearly specifies that when the assessee is default, the duty liability has to be paid in PLA only and therefore the order is legally correct and they should be directed the predeposit the entire dues. He relies on the follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see, the assessee can pay the duty liability through cash or CENVAT credit so long as there is no specific prohibition against such payment through CENVAT credit. Such prohibition exists as per Rule 8(3A) only when the assessee is in default. Once they come out of the default by paying the defaulted amounts in cash, they can pay the duty liability using CENVAT credit. The fact that they had used i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at credit during defaulting period cannot be taken as proper discharge of duty. This interest amount is not seen quantified. Further a penalty also is payable. Considering this aspect, I direct the applicant to predeposit Rs.50,000/- (Rupees fifty thousand only) within four weeks for admission of the appeal and to report compliance on 20.9.2013. Upon such deposit, predeposit of the balance dues st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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