2017 (9) TMI 290

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s been filed by appellant against imposition of penalty under Rule 25(1)(a) of Central Excise Rules 2002. 2. Ld. Counsel for the appellant argued that they had defaulted in payment of central excise duty. Consequently under provisions of Rule 8 (3A) they were required to pay duty consignment-wise and stop using the cenvat credit. Ld. Counsel pointed out that Hon'ble High Court of Gujarat in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....al Ltd. (supra). In para 6 of the said decision following has been observed:- "6. I find that this is a case of imposition of penalty under Rule 25 which is equal to the duty amount payable during the month of April and May, 2006. The penalty was imposed on the ground that the appellant during April and May, 2006 cleared the goods without paying the duty on consignment basis. Duty was paid for ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and whatever delay in payment of duty on the basis of date of clearance of the goods, they have paid interest as applicable. This is a case of delay in payment of duty and cannot be construed as case of evasion of duty, therefore, appellant is not liable for penalty under Rule 25. In the judgment cited by the ld. counsel in case of Saurashtra Cement Ltd. (supra), the Hon'ble Gujarat High Court, o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... equal to the duty so determined. For the purpose of invoking Section 11AC of the Act, the condition precedent is that the duty has not been levied, or paid or short-levied or short-paid or the refund is erroneously granted by reasons of fraud, collusion or any wilful misstatement or suppression of facts. If these ingredients are not present, penalty under Section 11AC cannot be levied. Since Rule....