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TMI Blog2016 (11) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... d of Rs. 12,57,365/-, interest under Section 75 and imposed penalty under Section 76 and Section 77 of the Act. The demand of Rs. 12,57,365/- was confirmed on the ground that the appellant paid this amount through Cenvat Credit on 30.11.2008, 31.12.2008 and 31.01.2009 whereas this amount was due on 5.11.2008. The Service Tax due on 5.11.2008 was paid through Cenvat Credit which was earned during 30.11.2008 to 31.1.2009 which is not permissible in terms of Rule 3(4) of Cenvat Credit Rules, 2004. 3. Ms. Puloma Dalal, Ld. Chartered Accountant appearing on behalf of the appellant submit that the appellant though paid this amount from Cenvat Account but for the delayed period also paid the interest. Therefore there shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the payment of duty/service tax can be discharged from the Cenvat Credit 5. I have carefully considered of the submissions made by both the sides. I find that the fact is not under dispute that the service tax due in the month of November 2008 was discharged through Cenvat Credit earned during the period 30.11.2008 to 31.1.2009. In this regard, I reproduce the relevant Rule 3(4) of Cenvat Credit Rules, 2002. (4) The CENVAT credit may be utilized for payment of - a) any duty of excise on any final product; or b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or c) an amount equal to the CENV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious period and as per Rule 3(4) of Cenvat Credit Rules, 2004, the service tax of the previous period of November 2008 can be paid from the Cenvat credit balance available as of 30.11.2008 only. Therefore, the fact of the judgments relied upon and the facts of the present case are different. Hence, the ratios of the judgments cited by the Ld. Chartered Accountant are not applicable in this case. In view of above clear legal position, I am of the considered view that the appellant was required to pay the dues of Rs. 12,57,365/- from cash and not from Cenvat account, however, since the appellant have discharged the service tax from the Cenvat account, I hold that the appellant shall deposit Rs. 12,57,365/- in cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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