Penalty for non-payment under Cenvat Credit Rules upheld after bona fide mistake plea and Rule 57CC reliance were rejected.

Penalty for non-payment under Rule 6(3)(b) of the Cenvat Credit Rules, 2002 was upheld because the demand itself was not pressed and only the penalty remained in dispute. The assessee's plea of bona fide mistake was rejected as a fresh contention not raised earlier, and ignorance of the rule was held not to excuse non-compliance. Reliance on the earlier Rule 57CC of the Central Excise Rules, 1944 did not displace the liability. The penalty was sustained and the appeal failed.

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Issues: Whether the penalty imposed for non-payment under Rule 6(3)(b) of the Cenvat Credit Rules, 2002 was sustainable.

Analysis: The demand itself was not pressed, leaving only the penalty in dispute. The plea that the assessee acted under a bona fide mistake was rejected because it was a new plea not raised earlier and, in any event, ignorance of the rule could not excuse non-compliance. Reliance on the erstwhile Rule 57CC of the Central Excise Rules, 1944 was also found insufficient to displace the liability.

Conclusion: The penalty was upheld and the challenge to it failed.

Final Conclusion: The appeal was dismissed and the impugned order was affirmed.

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