https://www.taxtmi.com/caselaws?id=111384 During forfeiture of the fortnightly duty-payment facility, Rule 173G(1) of the Central Excise Rules, 1944 required duty on each consignment to be paid by debiting the account current; payment through Cenvat credit was not permitted. A clearance made in breach of that requirement was treated as a clearance without payment of duty, so confiscation and penal action could follow. Where the duty and interest were paid immediately after the defect was pointed out, the monetary consequences could be reduced substantially. The commentary states that confiscation and penalty were upheld, while the penalty and redemption fine were reduced to Rs. 10,000 each. en-us Fri, 17 Oct 2003 00:00:00 +0530 Mon, 23 Apr 2012 13:07:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111384 During forfeiture of the fortnightly duty-payment facility, Rule 173G(1) of the Central Excise Rules, 1944 required duty on each consignment to be paid by debiting the account current; payment through Cenvat credit was not permitted. A clearance made in breach of that requirement was treated as a clearance without payment of duty, so confiscation and penal action could follow. Where the duty and interest were paid immediately after the defect was pointed out, the monetary consequences could be reduced substantially. The commentary states that confiscation and penalty were upheld, while the penalty and redemption fine were reduced to Rs. 10,000 each. Case-Laws Central Excise Fri, 17 Oct 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111384