M/S. Parth Pharmachem Industries vs Commissioner Of Central Excise & S.T., ...
- CitationAppeal No. : E/121/2012
Ratio decidendi
The rule this decision rests on
The duty demand cannot be sustained where the assessee discharged the duty liability for the defaulted period by utilising CENVAT credit, because the Tribunal treats such payment as correct in light of the High Court's decision in Indsur Global Limited v. UOI, which holds that a requirement to pay duty in cash is rendered invalid where it is not borne out by the rules as the High Court construed sub-rule (3A) of Rule 8 of the Central Excise Rules, 2002.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of OIA-06/2012-AHD-II-CE/MM/COMMR-A-/AHD dated 12.01.2012, passed by Commissioner (Appeals) Central Excise, & S.T., Ahmedabad)
M/s. Parth Pharmachem Industries : Appellant (s)
VERSUS
Commissioner of Central Excise & S.T., Ahmedabad : Respondent (s)
Represented by :
For Appellant (s) : Shri Vipul Khandar, Chartered Accountant. For Respondent (s) : Shri K. Sivakumar, Authorised Representative
For approval and signature :
Mr. P.K. Das, Honble Member (Judicial)
1 Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
No 2 Whether it should be released under Rule 27 of CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
No 3 Whether their Lordships wish to see the fair copy of the Order?
Seen 4 Whether Order is to be circulated to the Departmental authorities?
Yes
CORAM :
Mr. P.K. Das, Honble Member (Judicial)
Date of Hearing / Decision : 26.05.2015
ORDER No. A/10680 / 2015 Dated 26.05.2015
Per : Mr. P.K. Das;
Learned Counsel for the appellant fairly submits that they are contesting the demand of Rs. 6,86,630/- required to be recovered from them in cash only. He submits that the appellant failed to discharge the duty liability on monthly basis under Rule 8 of the Central Excise Rules, 2002. They have discharged the duty liability during the defaulted period from CENVAT Account. He submits that Hon'ble Gujarat High Court in the case of Indsur Global Limited vs. UOI 2014 (310) ELT 833 (Guj.), held that the portion without utilizing the Cenvat Credit of sub-rule (3A) of Rule 8 of the Central Excise Rules, 2002 shall be rendered invalid.
2. In view of the decision of the Hon'ble Gujarat High Court the payment of duty during the defaulted period from CENVAT account would be held as correct. In view that, the impugned order is modified to the extent that the demand of duty of Rs. 6,86,630/- alongwith interest and penalty of equal amount is set-aside.
3. The appeal filed by the appellant is allowed in above terms. (Order dictated and pronounced in the Court)
(P.K. Das) Member (Judicial) .KL
2
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