2016 (12) TMI 657

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..... Agarwal, A.R. for the respondent Per B. Ravichandran: The appellants are engaged in the manufacture of Leaf Spring Assemblies, liable to central excise duty and were also availing cenvat credit of duty in terms of Cenvat Credit Rules, 2004. It was noticed that the appellant defaulted in timely payment of central excise duty for the month of May 2011 in terms of Rule 8(1) of Central Excise Rules .....

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..... duty was confirmed with interest to be paid by cash. The appellants pleaded that the amount payable by them for the month of May 2011 was correctly worked out and reflected in ER-1 return. However, on account of calculation mistake, the amount of Rs. 23,86,456/- was debited in place of correct duty liability of Rs. 28,66,254/-. They had sufficient balance in the cenvat credit account to pay this d .....

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..... ELT 489 (Mad.) and held that the assessee has right to use cenvat credit to discharge central excise duty even during defaulted period. The Hon'ble High Court observed that right to pay duty by utilizing cenvat credit cannot be denied unless it is a case of illegality or irregular credit. Reference can also be made to the decision of Hon'ble High Court of Bombay in Lloyds Steel Industries Ltd. vs .....

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