M/S. Sandhu Auto Industries vs Commissioner Of Central Excise

[Arising out of Order-In-Appeal No. 80/CE/DLH/2012 dated 31/10/2012 passed by Commissioner of Central Excise (Appeals), Delhi I, New Delhi]

For approval and signature:

Honble Mr Ashok Jindal, Member (Judicial)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

M/s. Sandhu Auto Industries Appellants

Vs.

Commissioner of Central Excise Respondent

New Delhi

Appearance:

Shri V R Sethi, Advocate for the Appellants

Shri R K Grover, AR for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing /decision: 01.09.2015

ORDER NO. FO/ 52728/2015-Ex (SM)

Per Ashok Jindal :

Heard the parties.

2. It is the case where the appellant defaulted in payment of duty in time. Later on, duty was paid by utilizing Cenvat credit. Revenues contention is that as the appellant has contravened the provision of Rule 8(3A) of Central Excise Rules, 2002. Therefore, they could not utilize the cenvat credit account for payment of duty during the intervening period and same is payable by them through PLA along with interest. In these circumstances, penalty was also imposed.

3. As the issue has been settled by Honble Gujarat High Court in the case of Indsur Global Ltd. vs. Union of India [2014 (310) ELT 833 (Guj)] wherein the Honble High Court has held that Rule 8 (3A) is ultra virus and cenvat credit can be utilized for payment of duty during intervening period. Therefore, I hold that appellant has correctly utilized the cenvat credit account for payment of duty. In these circumstances, the appellant is liable to pay interest for the intervening period and penalty of Rs.5,000/- is imposed under Rule 27 of the Central excise Rules, 2002. Interest and penalty shall be payable by the appellant within 30 days of communication of this order.

4. Appeal is disposed of in the above terms.

(Dictated and pronounced in the open court )

( Ashok Jindal ) Member(Judicial)

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