CCE Vs. SRI KRISHNA SMELTERS LTD.

JUDGEMENT

(1.) HEARD both sides.

(2.) THE brief fact of the case is that the Appellant -Assessee paid Rs. 1,47,965/ - on 5.10.2008 for the clearances made during the month of September 2008. This amount was paid by utilizing CENVAT credit as per rules in force. The Appellants were permitted to use the credit available up to the end of September 2008 for paying duty in respect of clearances made during the month of September 2008. In other words, they were not permitted to utilize credit subsequently earned during the period from 1.10.2008 to 5.10.2008 for paying duty in respect of clearances for the previous month. The Appellant -Assessee was found to have utilized credit of Rs. 71,965/ - which has accrued to them during the first 5 days of October 2008 and as such, such utilization for paying duty for the previous month was not permitted under the law.

(3.) AFTER considering arguments from both sides as well as the facts of the case, I am of the view that the lower appellate authority was right in considering wrong utilization of Rs. 71,965/ - as a case of mere infringement of the legal provision rather than a default in payment of duty. A default in payment would be a case of not paying any duty at all. This is not a case of not paying duty but utilizing some credit amounts which accrues in the month of October and which could not have been used for paying duty in respect of clearances made during the previous month of September 2008.