Partial duty default can justify moderated forfeiture of monthly payment facility when substantial duty was already paid on time.

Partial default in payment of central excise duty can justify forfeiture of the monthly duty-payment facility, but the period of forfeiture may be moderated on the facts where substantial duty has already been discharged by the due date and only a small balance is later paid with interest. The appellate authority's reduction of the forfeiture period from two months to one and a half months was treated as a proper discretionary adjustment in the circumstances, and no error was found warranting interference with that modification.

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Issues: Whether the forfeiture of the facility of payment of duty on a monthly basis under Rule 8 of the Central Excise Rules, 2001 was liable to be interfered with and restored to the original period, or whether the reduced forfeiture period fixed by the appellate authority was justified.

Analysis: The Respondent had failed to discharge duty liability by the due date, attracting forfeiture of the monthly payment facility. However, the record showed that substantial duty had already been paid by the due date and only a small balance remained outstanding, which was later paid with interest beyond 30 days. In these circumstances, the forfeiture of the facility for two months was considered harsh. The appellate authority had already applied the facts and circumstances of the case and reduced the forfeiture period to one and a half months. No reason was found to interfere with that discretionary modification.

Conclusion: The reduction of the forfeiture period was upheld and the Revenue's challenge failed.

Ratio Decidendi: Where the default is partial and substantial duty has been discharged by the due date, the authority may, on the facts and circumstances, reduce the forfeiture period of the facility for monthly payment of duty, and such discretionary moderation will not be interfered with absent error.

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