M/S. JAYASWAL NECO LTD. versus COMMISSIONER OF CENTRAL EXCISE, RAIPUR

M/S. JAYASWAL NECO LTD. versus COMMISSIONER OF CENTRAL EXCISE, RAIPUR

Even during the period when the facility of payment of excise duty in instalments was withdrawn under the then applicable Rule 173G(1)(e), payment through Cenvat Credit was a valid mode as per the rules, and the Tribunal's order disallowing such payment and imposing interest for delayed cash payment is set aside.

Source-derived case information.

Parties
Appellant: Jayaswal Neco Ltd.; Respondent: Commissioner of Central Excise, Raipur
Jurisdiction
India
Judgment Date
06 August 2015
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From CESTAT
Outcome
Appeals allowed; Tribunal's order set aside.
Legal Topics
Cenvat Credit, Interest for Delayed Payment, Interpretation of Central Excise Rules 1944, Rule 173 G Application
Central Excise Tax Law Cenvat Credit Interest for Delayed Payment Interpretation of Central Excise Rules 1944 Rule 173 G Application

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Parties

Jayaswal Neco Ltd.

Appellant

Commissioner of Central Excise, Raipur

Respondent

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From CESTAT

Legal Issues

  1. 1 Whether payment of excise duty through Cenvat Credit was permissible during the period when the facility of fortnightly payment under Rule 173G(1)(e) was suspended
  2. 2 Whether interest for belated payment was chargeable when duty was paid by Cenvat Credit during the suspension period

Ratio Decidendi

Even during the period when the facility of payment of excise duty in instalments was withdrawn under the then applicable Rule 173G(1)(e), payment through Cenvat Credit was a valid mode as per the rules, and the Tribunal's order disallowing such payment and imposing interest for delayed cash payment is set aside.

Court Disposition

Appeals allowed; Tribunal's order set aside.

Orders

  • Appeals allowed; decision of CESTAT is set aside.