2010 (12) TMI 316

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....t. Shri R.K. Gupta, SDR, for the Respondent. [Order (Oral)]. -  This is an appeal against the order of the Commissioner by which the penalty of Rs. 5 lakhs stands imposed on the ground that there was default in payment of duty amounting to Rs. 52,93,525/- during the month of December, 2006. 2. Heard both sides. 3. The appellant was required to pay the duty amounting to Rs.....

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.... consignment wise. Once these conditions are satisfied, Rule 8(3A) does not envisage any further penal action. As long as the defaulted amount along with interest is paid, there is no further penal action required. In this context, he also relied on provisions of Rule 8(3) of Central Excise Rules, 2002. 5. Learned SDR reiterates the findings and reasoning of the Commissioner. 6. I have ....

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.... Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilising the CENVAT credit till the date the assessee pays the outstanding amount including interest thereon; and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow."....

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....n clearances during the subsequent period, i.e. till clearance of duty due along with I interest is only because of default in respect of clearances made, in this case in December, 2006. There is no warrant to treat the words "such goods" appearing the Rule 8(3A) as referring only to goods cleared from January, 2007 till June, 2007 when dues were cleared and not to include goods cleared in Decembe....