TaxTMI 
TaxTMI 
2025 (11) TMI 503
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....as well. During the audit of its records, it was observed that the appellant has paid monthly duty liability for the months of January 2017 to March 2017, belatedly, beyond one month from the due dates. Department, while invoking Rule 8(3A) of Central Excise Rules, 2002, proposed imposition of penalty. The original adjudicating authority vide correspondence bearing No. 1/2016/737 dated 16.06.2017 (Order-in-Original) confirmed that the appellant has short paid the penalty amounting to Rs. 45,09,128/- Rs. 19,34,762/- + Rs. 15,10,176/- + Rs. 10,64,190/- for the disputed period January 2017 to March 2017. Being aggrieved of the said confirmation, appellant filed an appeal before Commissioner (Appeals) who vide order bearing No. 0110-22-23 dated....
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.... Resolution Plan based in those proceedings has been upheld by Hon'ble Supreme Court and the judgment dated 15.11.2019 reported as "(2020) 8 SCC 531" in accordance of the said Resolution has been the successfully resolution applicant i.e. Arcelor Mittal India Private Limited [AMIPL] has assumed the complete control of management and affairs of M/s Essar Steel India Limited/the corporate Debtor with effect from 08.01.2020. As a consequence of the said plan, any demand of tax/duties whether contingent or crystallized, known or unknown, filed or not filed, pertaining to the appellant for the period prior to 16.12.2019 stands extinguished. The demand is not sustainable in view of the said order also. With these submissions, the order under chal....
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....month from the due date, then the assessee is liable to pay the penalty at the rate of one per cent, on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues. Explanation. - For the purposes of this sub-rule, 'month means the period between two consecutive due dates for payment of duty specified under sub-rule (1) or the first proviso to sub-rule (1), as the case may be." 9. The perusal of the provision reveals that the penalty has to be paid @ 1% on such amount of duty not paid for each month or a part thereof. The clear meaning thereby is that if a duty is due by a particular date of the moth, then even it is not paid by the specifi....
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....convey one's thought or that the assembly of Legislatures consisting of persons of various shades of opinion purport to convey a meaning which may be obscure. It is impossible even for the most imaginative legislature to forestall exhaustively situations and circumstances that may emerge after enacting a statute where its application may be called for. Nonetheless, the function of the Courts is only to expound and not to legislate. Legislation in a modern State is actuated with some policy to curb some public evil or to effectuate some public benefit. The legislation is primarily directed to the problems before the Legislature based on information derived from past and present experience. It may also be designed by use of general words to c....
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....h the alleged object and policy of the Act. 10. I observe that the aforesaid Rule 8(3A) of Central Excise Rules has already been interpreted by Hon'ble High Court Madras in the case of State of Tamil Nadu Vs. P.T.C. Sanghvi & Co. - 1987 (66) STC 69 (Madras) wherein the department's view that the penalty for the whole month will have to be calculated, even if the delay is not of the whole month has already been held to be incorrect view. It has been held that plain reading of Rule 8(3A) does not envisage imposing liability upon an assessee even for one day where there was no default and payment of such duties stood made by the date. Hon'ble Allahabad High Court in the case of A.T.V. Projects India Ltd. Vs. Union of India- 2016 (341)....