Penalty for delayed central excise duty payment under Rule 8A was unsustainable where the invoked penal rules did not apply.

Delay in payment of central excise duty under Rule 8A did not attract penalty under Rules 8(4) and 25 of the Central Excise Rules where duty liability and interest were undisputed and the dispute was confined to penalty. The Tribunal held that the penal provisions invoked were inapplicable to a mere delayed payment situation under Rule 8A, so the penalty could not be sustained. The penalty was therefore set aside.

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Issues: Whether penalty was sustainable for delay in payment of central excise duty under Rule 8A of the Central Excise Rules.

Analysis: The duty liability and interest were not disputed. The dispute was confined to penalty. The Tribunal held that the penal provisions invoked under Rules 8(4) and 25 of the Central Excise Rules did not apply to cases involving mere delay in payment of duty under Rule 8A. Since the rules relied upon were inapplicable to the facts, the penalty could not be sustained.

Conclusion: The penalty was not sustainable and was set aside.

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