TaxTMI 
TaxTMI 
2011 (7) TMI 905
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....ate which was paid subsequently with short span of delay due to financial crunch pleaded by appellant. The show cause notice proposed confiscation and penalty. 1.1 The adjudication proceeded on the premises that the goods which were cleared without payment of duty duly in terms of Rule 8 of Central Excise Rules, 2002, were liable to confiscation and such act calls for levy of penalty. Such a view was upheld by first appellate authority below. 2. Ld. Counsel on behalf of the appellant submits that there was a submission before adjudicating authority about the financial crunch of the appellant which is clear from para 2.4 of the adjudication order. Other than such a financial difficulty, the appellant had no motive for subjecting ....
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....he goods have gone out of their reach. The assessee was aware that it has an obligation to discharge the duty liability by due date prescribed under Rule 8 of the Central Excise Rules, 2002. When there was a default in payment of that duty duly, the contravention invited consequence under Rule 25 of Central Excise Rules, 2002 read with the provisions contained in Section 11AC of Central Excise Act, 1944. Such a consequence was rightly judged by the authorities below for which the first appellate order does not call for interference. 4. Heard both sides and perused records. 5.1 The default in question was non-payment of duty duly when there is a bond between departments and the assessee to discharge duty liability on the goods ma....
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....1AC is essential. 5.3 Reading of Rule 25 of Central Excise Rules, 2002 throws light that presence of ingredients of Section 11AC of Central Excise Act, 1944 gives rise to confiscation along with imposition of penalty. Depending on the facts and circumstances of each case, both the penal consequences follow. If show cause notice does not show presence of ingredients of Section 11AC of Central Excise Act, 1944, only penalty is imposable under Rule 25. 5.4 Confiscation is an action which is deterrent in nature. It is a very serious remedy available to prosecution in criminal jurisprudence. Penal consequence in fiscal proceedings is quasi-criminal in nature. Therefore, such proceeding is also governed by criminal jurisprudence for t....
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....no confiscation, there shall not be redemption fine. 6. Since the citations are made in the bar, it is necessary to deal with the citations relied upon by the Respondent. The first citation relied relates to Raja Impex Pvt. Ltd. (supra). There is no difference to the proposition of law laid down by Hon'ble Punjab & Haryana High Court. In that case, when the goods were admittedly cleared by customs authorities without execution of any bond/undertaking by assessee, on the facts and circumstances of the case, finding no substantial question of law arose, Revenue's appeal was dismissed. Reliance was also placed by Respondent on the Apex Court Judgment in the Western Components Ltd. (supra). It has been held that if subsequently it is foun....