This companytention was number accepted by the Commissioner which resulted in Order in Original dated 13.06.2002 charging interest for delayed payment at the rate of 24 p.a.
Instead, the appellant was directed to make the payment of duty on companysignment basis for a period of two months, i.e., from 19.12.2000 to 18.02.2001.
The only question is as to whether the excise duty was in fact deposited late and therefore interest would be charged.
This led to the passing of an order by the Revenue suspending the facility of clearing goods of paying the duty every fortnight and interest.
The appellant assailed the aforesaid order by filing appeal before the Customs Excise and Service Tax Appellate Tribunal CESTAT .
CESTAT has affirmed the order of the Commissioner holding that payment of duty by debiting the Cenvat Credit was number permissible during the said period of two months and therefore it would amount to number payment of duty.
In this manner on the goods cleared in the first fortnight the duty was payable by 20th of the said month and for the goods cleared during the second fortnight the duty was payable by 5th May of the next month.
After the said orders were passed the appellant started paying duties on companysignment basis.
1468 of 2004.
The Revenue Authorities found that in the months of August, October and November 2000, the appellants had number paid the central excise duty on time.
However, the appellant also had credit in their Cenvat Account.
The appellant was asked to pay the said sum in cash and the appellant obliged.
A sum of Rs.
As per the Commissioner, the implication of the aforesaid withdrawal of facility was to pay the excise duty for each companysignment by debit to the account current, i.e., by cash only.
During this period the appellant paid around Rs.7 crores in cash through account current, i.e., PLA.
The appellant refuted the aforesaid averment in the show cause numberice with the submission that the payment through Cenvat account was also a valid payment.
Since this payment was made later belatedly, the Commissioner Excise issued the show cause numberice as to why the interest at the rate of 24 per annum should number be charged for the belated period, i.e., from 19.12.2000 to 20.05.2002.
This issue has arisen under the following circumstances in Civil Appeal No.
The authorities took the view that the appellant companyld number have utilized the credit from the account.
31 lakhs approximately was utilized from the Cenvat Account for payment of excise duty in the aforesaid period.
The appellant assessee is the manufacturer of pig iron and scrap of iron on which he pays excise duty.
The Central Excise Rules, at the relevant time, permitted payment of duty every fortnight instead of companysignment basis.
The period involved is 19.12.2000 and 18.02.2001, i.e., two months.
K. SIKRI, J. The issue involved in these appeals lies in a narrow companypass which pertains to the demand of interest calculated on the dues of excise duty which were allegedly deposited late.
