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2016 (11) TMI 404 - CESTAT NEW DELHIDemand of duty with interest - imposition of penalty - manufacture of Rubber tyres of motor vehicles classifiable under chapter 40112090 of the Scheduled to Central Excise Tariff Act 1985 - payment of duty at the time of removal of consignment - Rule 8(3A) of the Central Excise Rules, 2002 - Held that: - It is an admitted fact that the appellant had defaulted in making payment of Central Excise duty within the stipulated time frame prescribed under Rule 8 of the Central Excise Rules, 2002. It is also an admitted fact that the entire duty liability confirmed in the impugned order was paid by the appellant, partly from its cenvat account and partly from the personal ledger account. So far as payment from the cenvat account is concerned, the Hon’ble Gujarat High Court in the case of Indsur Global Ltd. (2014 (12) TMI 585 - GUJARAT HIGH COURT) have held that payment from the cenvat account during the defaulted period is to be considered as a valid payment. Therefore, we are of the view that the payment made by the appellant is to be construed as payment of duty in terms of Rule 8 of the Central Excise Rules, 2002. With regard to payment of interest on delayed payment of duty, we are of the view that no such specific provisions exist in the Central Excise Rules, providing for relaxation from payment of interest in any circumstances. Therefore, in absence of any specific provisions, we are of the considered opinion that the appellant is liable to pay interest for delayed payment of Central Excise duty. Thus, the interest liability is confirmed. Considering the overall facts and circumstances of the case, we are of the view that the penalty of ₹ 25,00,000/- imposed in the adjudication order is in the higher side and in the interest of justice, we reduce the penalty to ₹ 1,00,000/- - appeal disposed off - decided partly in favor of assessee.
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