JINDAL INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is aggrieved by the order dated 17.3.2001 passed by the Deputy Commissioner of Central Excise, Hissar. He has also prayed that the demand vide letter dated 14.3.2001 of the Department directing the petitioner to debit the P.L.Account by an amount of Rs. 24,15,688/- be quashed. It is incorporated in the petition that prior to 1.4.2000 under the Central Excise Act the petitioner was required to deposit the amount of excise duty due with the department on consignment basis, i.e. the duty had to be paid on the basis of each consignment -of the manufactured goods cleared through Account Current i.e. in cash or through the credit balance lying in Cenvat Account.

(2.) The Central Government,however, amended the Central Excise Rules 49 & 173-G from April,2000 and introduced a scheme for payment of excise duty in instalments, by which the excise duty for the first fortnight of the month became payable by the 20th day of the month and the duty for the second fortnight of the month became payable by the 5th day of the succeeding month instead of paying duty on each consignment. On default, the assessee would be liable to pay the outstanding amount along with the interest at the rate of 24% per annum. Rule 173G of the Central Excise Rules, 1944 reads as under: RULE 173G, Procedure to be followed by the assessee.- 1(a) Every manufacturer, other than a manufacturer who is availing of the exemption under a notification based on value of clearances in a financial year, shall discharge his duty liability in respect of clearances of excisable goods from the place or premises specified under rule 9 or from a store room or other place of storage approved by the Commissioner under rule 47 made : (i) during the first fortnight of the month, by the twentieth day of that month; (ii) during the second fortnight of the month, other than the month of March, by the fifth day of the succeeding month; and (iii) during the second fortnight of March, in the following manner, namely: (I) the manufacturer shall pay, by the 31st day of March, a sum equal to the aggregate of- (A) the amount of duty payable on actual clearances made up to the twenty fifth day of March; and (B) an amount calculated, for the remaining six days of march, pro-rata of the actual duty payable under (A) above; (II) Where the payment made in the manner specified in sub-clause (I) above,- (A) is less than the actual duty liability for the second fortnight of March, the manufacturer shall pay the balance amount of the duty by the twentieth day of April of that year; (B) is more than the actual duty liability for the. said second fortnight of March, the excess amount may be adjusted against the duty liability for the first fortnight of the month of April of that year and where such adjustment is not possible for any reason, against the duty liability for any subsequent fortnight. ..."

(3.) It is incorporated in the petition that if the assessee defaulted in payment of duty of any one instalment on the due date, and that such default continued for a period of 30 days or that there was default in payment of instalments on three occasions in a financial year, whether in succession or otherwise, then the proper officer could pass an order forfeiting the facility of paying the duty in instalments for a period of two months, starting from the date of communication of the order, and during this period the assesses shall be required to pay excise duty for each consignment by debit to the Account Current only, i.e. in cash only and not through Cenvat account.