2011 (6) TMI 423

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....l & May, 04 and in other appeals default of one month each is involved). The appellants paid part of duty due for the months of April, 04 to July, 04 and September, 04 and March,05 and balance was paid later after delays ranging from 5 days to 85 days. While paying the balance of duty for the above months, after the delay, they have used the credit accrued after the due date of the concerned months. In view of the delay, the original authority held that there was violation of rule 8 of Central Excise Rules and consequently penal action under Rule 8(3) (A) was mandatory and accordingly he confirmed the demand of interest equal to duty amount defaulted for the concerned months and also imposed equal amounts as penalties under Rule 25 of Centr....

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....d to be strictly paid within the prescribed time limit. There have been delay in payment for several months by the appellants. Such default clearly attracts penal action under the provisions of Central Excise Rules as stipulated under Rule 8 (3) of Central Excise Rules, 2002 and such clearances involving default are treated as non duty paid clearances and therefore penalty under Rule 25 is warranted. 6.1 I have carefully considered the submissions and perused the records. In the present case, undisputedly the clearances were after due accountal of the goods in the production records and after issue of Central Excise invoices and clearances have been reflected in the returns submitted to the department. At the same time, it is also not disp....