TaxTMI 
TaxTMI 
2014 (9) TMI 657
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....28,395/- under the above provisions. A penalty of Rs. 50 lakhs has also been imposed on M/s. CSPL, under the provisions of Rule 25 of the Central Excise Rules, 2002. Aggrieved of the same, the appellant is before us. 2. The facts relevant to the case are as follows: 2.1 The appellant, M/s. CSPL defaulted in payment of Central Excise duty amounting to Rs. 4,18,97,700/- for the month of September 2008. This default in payment of duty was made good only on 07/04/2011 when the premises of the appellant was searched by the officers of DFCEI. Thereafter, the appellant paid defaulted Central Excise duty of Rs. 4,18,97,700/- along with interest amounting to Rs. 1,28,22,375/- vide challan dated 07/04/2011. As per Rule 8 (3A) of the Central Excise Rules, 2002 "when the assessee defaults in payment of duty and when the default continue for a period beyond 30 days from the due date, then the assessee has to pay excise duty for each consignment at the time of removal, without utilizing 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 that such goods have been cleared without payment of ....
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....question of imposition of any penalty under Section 11AC will not arise. In the present case, the adjudicating authority has appropriated the amount paid through PLA as well as Cenvat Credit account and also the interest amount paid by them. The adjudicating authority has also observed that the present case is not a case of complete non-payment of duty or clandestine removal of goods but a case of legally inappropriate discharge of duty. Therefore, the question of confirming the interest liability or imposing a penalty would not arise and therefore, he pleads for setting aside the interest liability as also the penalty imposed on the appellant. 3. The learned Commissioner (AR) appearing for the Revenue on the other hand submits that the show-cause notice issued to the appellant clearly lays down the charge against the appellant in para 6.1, 7 & 8 of the notice. As per the charge contained in these paragraphs, the appellant did not discharge excise duty liability for the month of September 2008 due on 05/10/2008 for an amount of Rs. 4,18,97,700/- and the default continued for a period of more than 30 days from the due date till the detection by the DGCEI. The default was made good ....
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....ch the duty shall be paid by the 31st day of March. Explanation 1. - For the purposes of this proviso, it is hereby clarified that an assessee shall be eligible, if his aggregate value of clearances of all excisable goods for home consumption in the preceding financial year, computed in the manner specified in the said notification, did not exceed rupees four hundred lakhs. Explanation - 2. - The manner of payment as specified in this proviso shall be available to the assessee for the whole of the financial year. Provided also that an assessee, who has paid total duty of rupees one lakh or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year, shall thereafter, deposit the duty electronically through internet banking. Explanation .- For the purposes of this rule,- (a) the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date; (b) if the assessee deposits the duty by cheque, the date of presentation of the cheque in....
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....interest under sub-rule (3) in the same manner as they are applicable for recovery of any duty or other sums payable to the Central Government. Explanation.- For the purposes of this rule, the expressions 'duty' or 'duty of excise' shall also include the amount payable in terms of the CENVAT Credit Rules, 2004 . 4.3 A reading of the Rule makes it clear that "when an assessee defaults in payment of duty and if the default continues for a period beyond 30 days from the due date, then the assessee has to pay excise duty for each consignment at the time of removal, without utilizing the Cenvat Credit till the date the assessee pays the outstanding amount including interest thereon. Therefore, the duty demand is not in respect of defaulted amount but in respect of the goods cleared subsequently during the default period. As per the show-cause notice, during default period the assessee cleared the goods on which duty liability was Rs. 13,43,70,590/-/. Out of this amount the assessee discharged duty liability to the extent of Rs. 2,38,10,905/- through PLA and Rs. 11,05,59,585/- through Cenvat Credit account. The discharge of duty liability through Cenv....