2017 (6) TMI 199

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....e Respondent ORDER In the adjudication order, penalty of Rs. 16,40,825/- was imposed under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Act. The fact of the case is that appellant have defaulted payment of monthly duty, However, they have paid the duty belatedly alongwith interest during the period October, 2007 to January, 2008. While imposing penalty equal to dut....

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....y payment of duty. The duty was admittedly paid alongwith interest for the delayed period. The duty liability which was discharged belatedly were declared in their monthly return. Therefore there is no suppression of facts, the only lapse on the part of the appellant is, they delayed the payment of duty for which there is self contained provisions under Rule 8(3), according to which assessee is re....

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....ise duty liability. The appellant have admittedly paid the duty alongwith interest for the delayed period. The excise duty liability is against routine clearances made under the cover of invoice. The monthly excise duty liability has been declared in respective monthly returns of the same month. With this fact there is absolutely no suppression of facts, fraud, collusion etc on the part of the app....

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.... that if at all penalty under Section 11AC is imposable that too if suppression of fact etc exist, the same cannot be set aside or reduce as no discretion is provided to the Central Excise authorities. The judgment of Dharamendra Textile Processors(supra) only applicable if as per the fact of the case Section 11AC penalty is imposable which can be imposed only on suppression of fact, mis-declarati....