Delayed excise duty payment without forfeiture order or intent to evade attracts only the minor penalty, not harsher punishment.

Mere delayed payment of fortnightly central excise duty, when the default is disclosed in statutory returns and no forfeiture order has been passed under Rule 8(4), does not attract the harsher penalty under Rule 25(1) read with Section 11AC of the Central Excise Act. The operative consequence under Rule 8(3) is interest on delayed payment, while the penal consequence remains limited to Rule 27 unless there is suppression, wilful contravention, or intent to evade duty. On the stated facts, the default was treated as a minor procedural lapse punishable only under Rule 27.

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Issues: Whether mere delay in payment of fortnightly central excise duty, disclosed in the statutory returns and not accompanied by a forfeiture order under Rule 8(4), attracted penalty under Rule 25(1) read with Section 11AC of the Central Excise Act, 1944, or only the minor penalty under Rule 27 of the Central Excise Rules, 2001/2002.

Analysis: Under Rule 8(3), delayed payment of duty carried interest. Rule 8(4) created a further consequence only where the default continued beyond thirty days or was repeated as specified and the Assistant/Deputy Commissioner passed a forfeiture order, after which duty had to be paid consignment-wise through PLA. The default in the present case was limited to non-payment by the due dates for two fortnights, and the non-payment was reflected in the ER-1/RT-12 returns. No forfeiture order under Rule 8(4) had been shown, and there was no allegation of false declaration, suppression, or any conduct showing intention to evade duty. The reasoning in the cited legal principle was that such delayed payment, by itself, does not satisfy the ingredients for the harsher penal provisions.

Conclusion: Penalty under Rule 25(1) read with Section 11AC was not attracted. The default was punishable only under Rule 27, and a penalty of Rs. 5,000/- for each instance of default was imposed.

Ratio Decidendi: Mere delayed payment of excise duty, without a forfeiture order under Rule 8(4) and without suppression, wilful contravention, or intent to evade duty, does not attract penalty under Rule 25(1) read with Section 11AC and is punishable only under Rule 27.

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