TaxTMI 
TaxTMI 
2013 (7) TMI 833
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....ny bank under those challans. The appellant on being so discovered, paid the duty along with interest on 26.02.2007 and 28.02.2007. In fact Sh. Vijay Kumar Gupta, Director of the Appellant Company in his statement dt. 28.02.2007 owned up the responsibility for the fabrication of bogus TR-6 Challans. After issue of Show Cause Notice, the Jurisdictional Assistant Commissioner vide Order-in-original dtd. 22.07.2009 confirmed the above duty demand along with interest and imposed equal amount of penalty on the appellant company under Rule 25(1) of Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act and on the Director Sh. Vijay Kumar Gupta under Rules 26 of Central Excise Rules 2002. The amount already deposited, was appr....
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....entral Excise Rules, 2002 requires payment of duty self assessed by a manufacturer under Rule 6 ibid in respect of the goods cleared by him during a month, by 5th of the next month and if the duty is not paid by the due date, he is liable to pay interest thereon at the notified rate. Sub-Rule3(A) of Rule 8 provides that if default in discharge of monthly duty liability in respect of goods cleared during a month, continues beyond the period of one month from the due date, the assessee during the period of default shall forfeit the facility to pay duty on monthly basis and shall pay duty consignment wise and shall also forfeit the facility to utilize the Cenvat Credit for payment of duty and pay duty through PLA consignment wise, and in the e....
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....with an element of fraud also involved therein. Therefore penalty would be imposable on the Appellant company under Rule 25(1)(d) and looking to the nature of contravention, penalty equal to the duty not paid would be justified. 8. This is a case of fraudulent and deliberate failure to discharge the monthly duty liability for which the penalty would be imposable under Rule 25(1)(d) Section 11AC is attracted, in case of non-levy, short levy, short payment or erroneous refund of duty involving fraud etc. for which duty demand is required to be confirmed under Section 11A(2). In term of Sub-Rule (4) of Rule 8 of Central Excise Rules, 2002, the duty self assessed under Rule 6 ibid along with interest for the period of delay payment can be reco....