The Ahmedabad CESTAT held that assessee are allowed to pay the excise duty by utilising the cenvat credit during the default period also.
The appellant submitted that the bar of utilizing the cenvat credit during the default period of monthly payment of duty in terms of Rule 8(3A) was held ultravirus by the Gujarat High Court in the case of Indsur Global Ltd. vs UOI.
The appellant was authorized to utilize the cenvat credit even though during the default period of monthly payment of duty.
The issue raised was whether the appellant is allowed to utilize the cenvat credit for payment of excise duty on removal of excisable goods during the period when they have defaulted in making the monthly payment of duty, in terms of Rule 8(3A) of Central Excise Rules, 2002.
“Considering this settled legal position which is in favour of the appellant, the impugned order is not sustainable. Accordingly, the impugned order is set aside. Appeal is allowed,” the tribunal said.
Case Name: SHREEJI PLASTIC V/s C.C.E. & S.T.-SURAT-I