2003 (4) TMI 150

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..... ubmits that the facility to pay Central Excise duty on fortnightly basis was introduced w.e.f. 1-4-2000. On three to four occasions there was some delay on their part to deposit the amount in question. Their jurisdictional Superintendent withdrew the said facility for a period of two months and as such the appellant was required to pay the duty on consignment basis. The said duty was paid by them .....

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..... account and have credited the same in their Cenvat account. However, he submits that the confirmation of interest against them is not justified inasmuch as they had paid the duty, though out of the Cenvat account. He submits that during the relevant period they had paid huge amount from their PLA which they could have paid out of the Cenvat account. As such there is no loss to the Revenue and inte .....

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..... ment by debit of the account current and in the event of any such failure, it will be deemed as if such goods have been cleared without payment of duty and consequences and penalties as provided in the Central Excise Rules shall follow. As such, he submits that by not paying duty out of the PLA account, it has to be deemed as if the goods have been cleared without payment of duty and the appellant .....

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..... Excise Rules shall follow. The appellants have admittedly not paid the duty from their account current and as such the clearances made by them have to be deemed to have been made without payment of duty. If the payments have not been made, the provisions of Rule 173G(d) provide for payment of interest at the rate of 24% per annum on the outstanding amount for the period starting with the first da .....

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..... of which payment of interest and penalty is to be upheld. Accordingly we uphold the order of the authorities below as regards the payment of duty and interest. As regards the penalty, we find that the appellants had paid the amount of delayed payment through their Cenvat and during the same period, they paid the duty from their PLA also. As such, it cannot be said that the appellant was benefited .....

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