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TMI Blog2014 (6) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... the returns filed by applicant. The applicant was liable to pay duty in cash, when they were in default. Any payment made through Cenvat credit can be taken as proper discharge only when no bar as per Rule 8(3A) of Central Excise Rules, 2002 was operating. If payment was made through credit after they came out of defaulting period it would be acceptable as proper discharge. The payment prior to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise dues, as declared by them for the month of July, 2008. However, the amount defaulted was paid in Sept.08 and the interest on defaulted amount was paid in Mar. 09 only. Thus, as per the provisions of Rule 8(3A) of the Central Excise Rules, 2002 the appellant was in default from Aug. 08 to Mar. 09. As per the said Rule, the assessee was not entitled to utilise Cenvat credit for payment of Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defaulted amount along with interest, which was good enough. Once they came out of the defaulted period, such payment became proper, according to him. Hence, at worst there can be interest liability on account of wrong utilisation of Cenvat credit. In this regard, he relies on the following decisions:- (i) Solar Chemferts Pvt. Ltd. Vs Commissioner of Central Excise, Thane-I reported i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Considered arguments on both sides. We do not agree with the argument that the clearances made by the applicant were clandestine removals because the clearances were reported in the returns filed by applicant. The applicant was liable to pay duty in cash, when they were in default. Any payment made through Cenvat credit can be taken as proper discharge only when no bar as per Rule 8(3A) of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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