M/S. Jayaswal Neco Ltd vs Commnr. Of Central Excise, Raipur

The Supreme Court addressed the issue of interest on delayed payment of excise duty under Rule 173G of the Central Excise Rules, 1944, determining that the appellant was not permitted to utilize Cenvat Credit during the suspension of the fortnightly payment facility. The Court upheld the CESTAT's decision that the appellant's use of Cenvat Credit constituted non-payment of duty, thereby justifying the imposition of interest at 24% per annum for the delayed period from 19.12.2000 to 20.05.2002. The ruling clarifies the conditions under which Cenvat Credit can be utilized when payment facilities are altered by the authorities.