9911796707
TMI Blog2005 (2) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant shall pay duty for each consignment in debit to the account current. Pursuant to this order, the appellant paid duty on consignment basis at the time of clearance of the goods. However, such duty payment was made from the Cenvat credit account and not from the Personal Ledger Account (PLA). Such payment, from Cenvat credit was considered an offence under order dated 27-7-2001 of the Dy. Commissioner and he imposed a penalty of over Rs. 15 lakhs on the appellant. This penalty was equal to the duty paid by the appellant from Cenvat credit. When it filed appeal before the Commissioner (Appeals), that Commissioner upheld the order; but gave relief by reducing the amount of penalty to Rs. 50,000/-. The present appeal is directed agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turer shall forfeit the facility to pay the dues in instalments under this sub-rule for a period of two months, starting from the date of communication of an order passed by the proper officer in this regard and during their period the manufacturer shall be required to pay excise duty for each consignment by debit to the account current referred to in Clause (b) and in the event of any such failure it will be deemed as if such goods have been cleared without payment of duty and the consequences and penalties as provided in the Central Excise Rules shall follow". 6. A perusal of the above provision makes it clear that the requirement is "to pay excise duty for each consignment by debit to the account current referred to in Clauses (b). Cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ach consignment by debit to the account current referred to in Clause (b). It is not disputed that the liability to pay duty can be discharge by debiting the account current or utilizing Cenvat credit, which is considered as good as making payment by debiting account current, in support of which reliance has been placed on the circular issued by the Central Board for Excise and Customs on 20-1-1998. As such prima facie, the petitioner is entitled to utilize Cenvat credit for payment of Central Excise duty on the clearance of final product". 9. The payment of duty by the appellant from the Cenvat credit satisfies the requirement of Rule 173G(e) in view of the judgment of the Hon'ble High Court, Mumbai. Therefore, there was no violation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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