1998 (10) TMI 259

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....f Rs. 1,000/- each in both the cases under the provisions of Rule 173Q for contravention of Rule 9(1) of the Central Excise Rules, 1944 along with other rules. 3. The appellants are engaged in the manufacture of washing powder and are availing the benefit of Modvat credit of duty paid on their inputs after observing the due procedure. During the month of February, 1994, closing balance in their RG 23A Part II was shown by them in excess by Rs. 2,000. As such, the clearances effected by them during the relevant period against the closing balance was in fact effected against debit balance of Rs. 1293.56. As such, by making debit balance clearance, it was alleged by the department, that they had contravened the provisions of Central Ex....

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.... bound to pay the same, by making debit entry in the RG 23A Part II and non-entry was only a clerical mistake on their part. He also submitted that during this period, they were having sufficient balance in their PLA. Had they known at the relevant time that there was debit balance in RG 23A Part II they would have paid the duty from their PLA. He pleaded that such minor technical errors which were rectified by themselves without intervention of the department, should not invoke penal provisions against them. For the above proposition, he relies upon the following decisions :- (i)  1990 (46) E.L.T. 400 (G.O.I.) [In Ref.- Dhanpur Sugar Mills Ltd.] (ii) 1998 (98) E.L.T. 344 (All.) [Singh Traders v. Commissioner of Sales Tax, L....

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....er of Income Tax] (ii) 1987 (27) E.L.T. 40 (A.P.) [Nizam Sugar Factory Ltd. v. Commissioner of Central Excise & Others] (iii) 1987 (27) E.L.T. 40 (A.P.) & (iv) 1986 (24) E.L.T. 80 (Tribunal). The ratio laid down in the above cases, is to the effect that mens rea is not required to be established before invoking the penal provisions of Rules 173Q and default in complying with the statutory requirements of law is sufficient for levy of penalty. In the circumstances, he prays for rejection of the appeals. 6. I have considered the submission from both the sides. The penalty in the instant case, has been imposed by the authorities below on the ground that the debit entry, though reflected in the gate pass, was not made i....