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2014 (3) TMI 420 - HC - Central ExcisePenalty u/s 11AC - delayed payment of duty though return was filed in time - tribunal observed that the delay was caused on account of inability of the Bank to give correct password. - Tribunal reduced penalty - Whether on the facts and in the circumstances of the case the CESTAT, New Delhi has committed an error of law in reducing the penalty levied upon the Respondent from ₹ 11,97,798/- imposed under the provisions of Rule 25 read with Section 11AC to ₹ 5,000/- under Rule 27 of the Central Excise Rules, 2002 - Held that:- as per Rule 25(d) of the Rules subject to the provisions of Section 11AC of the Act, if any producer, manufacturer, registered person of a warehouse or a registered dealer, contravenes any of the provisions of these rules or the notifications issued under these rules with intent to evade payment of duty, he is liable to pay the penalty in terms of Rule 25 of the Rules. The Court further observed that a bare perusal of this Rule would suggest that evasion of payment of duty is not sufficient to impose penalty on a producer or manufacturer. There should be an element of intention to evade payment of duty. Unless the authorities come to the definite conclusion that there was an intention to evade the payment of duty, a penalty cannot be imposed. We have perused the order of the Assistant Commissioner and the Commissioner Central Excise (Appeals). No case of clause (a), (b), (c) or (d) of Rule 25 has been made out. No case of fraud, collusion or any wilful statement or suppression of fact, or contravention of any other provisions of the act or of the rules made therein with the intent to evade the payment of duty, has been made out, which made respondents liable to pay duty as determined under sub-section (2) of section 11AC and liable to pay penalty - No substantial question of law arises - Following decision of COMMISSIONER OF C. EX., GUNTUR Versus ANDHRA CEMENTS LIMITED [2007 (4) TMI 265 - HIGH COURT OF JUDICATURE FOR ANDHRA PRADESH AT HYD] - Decided against Revenue.
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