2015 (6) TMI 1218

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....electrical appliances falling under chapter 85 of the Central Excise Tariff Act, 1985. The appellants cleared the goods for export after complying with the requirements under Notification No. 42/2001-C.E.(N.T.) dated 26.06.2001. A show cause notice dated 19.7.2013 was issued to the appellants alleging that the letter of undertaking (Form UT-1) having been not renewed was not in accordance with the Notification No. 42/2001-CE(NT) dated 26.06.2001 and the Board's Central Excise Manual Supplementary Instructions 2005. The adjudication was concluded by confirming the demand of Rs. 55,642/- as Central Excise duty and ordered recovery of the same along with interest, besides imposing penalty of equal amount under section 11AC of the Central Excis....

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....hapter 7 of CBEC's Excise Manual of Supplementary Instructions says that "a letter of undertaking shall be valid for 12 months provided the exporter complies with conditions of the letter of undertaking". That the appellant failed to renew the LUT and therefore did not abide by the procedure contemplated by law, for which reasonable penalty under Rule 27 has been imposed. 5. Contradicting the above submissions, the learned counsel for appellant challenged the imposition of penalty on two grounds. Firstly that there was no procedural lapse committed on the part of the appellant. That there is nothing in the provisions of law including the Notifications No. 42/2001-CE(NT) dated 26.06.2001 requiring the party to get the LUT renewed periodic....