2018 (1) TMI 1122

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....Appellant Shri K.P. Muralidharan, AC (AR) for the Respondent ORDER Per Bench Brief facts are that the appellants took Central Excise Registration started manufacturing activity from November 2007 onwards and cleared the goods issuing excisable invoices indicating the central excise duty. However, appellant failed to file returns and make debit entry in their CENVAT accounts. The officers visit....

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.... under section 11AC of Central Excise Act. He also imposed a separate penalty of Rs. 5,00,000/- on Shri H.K. Kim, Managing Director of the company under Rule 26(1) of Central Excise Rules, 2002. Hence these appeals. 2. On behalf of the appellants, ld. counsel Shri J. Shankar Raman submitted that the appellants were new to the procedures of Central Excise, and therefore did not file monthly return....

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....e appellant was under bonafide belief that when it had sufficient balance in the CENVAT account, there was no failure or violation of provisions of Central Excise law. This happened only because the appellant was new to the procedures of Central Excise Act and there was no malafide intention to suppress the information from the department. That mere non-filing of returns cannot be taken as non-pay....

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....us, it is seen that the appellant had started a new venture in November 2007 and obtained Central Excise registration. There was failure on the part of the appellant to make debit entry in the CENVAT account towards discharging duty liability. It is correct that there was sufficient balance during the relevant period in the CENVAT account for discharging the duty liability. The officers visited th....