2009 (7) TMI 1000

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....for the Respondent. [Order]. -  After dispensing with the condition of pre-deposit of penalties in both the cases, as duty and interest stand paid by the appellants, I proceed to decide the appeals itself. 2. It is seen that for the period subsequent to June, 2006 the appellant defaulted in payment of duty on fortnightly basis in terms of Rule 8 of Central Excise Rules, 2002, though t....

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....R submits that the period involved in the earlier cases was prior to June, 2006, when Rule 8(3A) was introduced. In terms of the said rule, if an assessee defaults in payment of duty beyond 30 days from the due date, the assessee shall pay excess duty for each consignment at the time of removal, without utilizing the Cenvat credit till the date the assessee pays the outstanding amount including in....

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....so as to invoke the provisions of Section 11AC. By delaying payment of duty, an assessee is penalised to the extent of interest required to be paid by him on such delayed payments. The Provisions of Rule 8(3A) relied upon by the SDR are not invocable inasmuch as the same relate to the assessee's liability to pay duty on each consignment at the time of removal without utilising the credit and it is....

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....ered by the Tribunal in the case of Saurashtra Cement [2008 (225) E.L.T. 395 (Tri. - Ahmd.)] and it was observed that where the goods are cleared under the cover of invoices and the only default is delay in payment of duty, the Provisions of Rule 27 would get attracted which provide for a maximum penalty of Rs. 5,000/-. To the same effect is another decision of the Tribunal in the case of CCE, All....