Rule 8(3A) forfeiture periods cannot be mechanically aggregated for repeated duty-payment defaults where the rule sets a fixed two-month consequence.

Repeated defaults in monthly excise duty payment under Rule 8(3A) did not justify mechanically aggregating forfeiture periods. The provision prescribed forfeiture of the facility to pay duty in monthly instalments for two months, or until payment of duty with interest, whichever was later, and contained no language requiring cumulative operation for multiple defaults later dealt with in a common order. Because the duty and interest had been paid, albeit belatedly, the appellate restriction of the forfeiture consequence to two months was upheld, and the Revenue's challenge failed.

---

---

Issues: Whether, on repeated defaults in monthly duty payment, the forfeiture period under Rule 8(3A) of the Central Excise Rules, 2002 was to run concurrently for each default or continuously so as to aggregate the periods.

Analysis: The defaults in payment of duty within the grace period of 30 days were not in dispute, and the consequence under Rule 8(3A) was forfeiture of the facility to pay duty in monthly instalments for two months or until payment of duty with interest, whichever was later. The provision did not contain language requiring separate forfeiture periods for each default to run continuously or cumulatively where multiple defaults were later adjudicated by a common order. Since the duty and interest had already been paid, though belatedly, the condition in the rule stood satisfied, and the appellate order limiting the forfeiture period to two months was correct.

Conclusion: The forfeiture periods did not have to be aggregated, and the reduction of the forfeiture period to two months was upheld in favour of the assessee.

Final Conclusion: The Revenue's challenge to the appellate order failed, and the assessee retained only the two-month forfeiture consequence contemplated by the rule.

Ratio Decidendi: Where the governing rule prescribes forfeiture for two months or until payment of duty with interest, and does not expressly provide cumulative operation for multiple defaults, the forfeiture period cannot be mechanically aggregated and must be confined to the period stated in the rule.

---