9911796707
TMI Blog2015 (8) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... he defaulted amounts has been already paid along with the defaulted amounts, demanding once again the interest by the Revenue will not amount to double jeopardy of payment of interest twice ? 2. Whether Sub Rule 3 A of Rule 8 of Central Excise Rules, 2002 regarding the payment of duty in PLA is applicable in respect of regular clearances until the outstanding amount is cleared ? and 3. Whether the defaulted amount paid using CENVAT credit is appropriate discharge of duty and if so, whether any interest is to be paid for the amounts paid using CENVAT credit?" 2. The case of the assessee is as follows: "The assessee manufactures excisable goods. During the period between April 2007 and October 2007 and again during the period between Janu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder No. 724/12 and Misc. Order No: 699/12: "4. As per Rule 8 (3A), if an assessee is in default of payment of his monthly dues he is not entitled to use CENVAT credit for payment of his excise duty liability during such period. So whatever CENVAT credit the appellant has used for payment of duty during such period cannot be considered as appropriate discharge of duty liability so long as default persists. Therefore, the appellant is required to pay interest on duty liability paid through CENVAT credit during defaulting period from the date of each clearance till the date on which they came out of default. The appellants are directed to calculate such interest and pay such interest as predeposit along with penalty of Rs. 5,000/- (Rupess fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 2011, etc. Batch. 7. The relevant portion of the order passed by the Gujarat High Court in the case of Indsur Global Ltd. vs. Union of India, reported in 2014 (310) E.L.T. 833 (Guj.) is as follows:- "36. In the result, the condition contained in sub-rule (3A) of Rule 8 for payment of duty without utilizing the CENVAT credit till an assessee pays the outstanding amount including interest is unconstitutional. Therefore, the portion 'without utilizing the cenvat credit' of sub-rule (3A) of Rule 8 of the Central Excise Rules, 2002, shall be rendered invalid." This decision of the Gujarat High Court was followed by a Division Bench of this Court in W.P. No. 2506 of 2011, etc. Batch wherein it was held as follows: "7. In the light ..... X X X X Extracts X X X X X X X X Extracts X X X X
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