CENTRAL EXCISE RULES, 2002

Rule 8(3A)

Manner of payment - Applicability of rule 8(3A) in case of assessee - Duty was timely paid by assessee -

Revenue denied benefit on utilization of Cenvat credit in terms of rule 8(3A) of Central Excise Rules, 2002 on the allegation that assessee did not pay duty in time and thereby forfeited its right to use Cenvat credit. Held: A plain reading of rule 8(3A) makes it clear that it applies to such cases where the assessee had defaulted in payment of excise duty beyond 30 days from the due date. That did not apply to assessee's case because it had already paid its duty even before audit whatever declared was payable. Audit actually found that some additional amounts were payable over and above what was declared in their returns as duty. Rule 8(3A) does not apply to every case where department, during scrutiny of returns, during audit or during investigation finds any additional amount is payable as duty of excise. All such demands will be recoverable by issuing a notice under section 11A of the Central Excise Act, 1944, but they do not get covered under rule 8(3A) of Central Excise Rules, 2002.

REFERRED : Indsur Global Ltd. v. Union of India & 2 (2014 (310) ELT 833 (Guj) : 2014 TaxPub(EX) 2124); Union of India and ors. v. Indsur Global Ltd. 2018 (362) ELT A67 (SC)

FAVOUR : In assessee's favour

A.Y. :

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