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2013 (6) TMI 180 - CESTAT AHMEDABADRequirement to pay duty only through PLA when facility to pay the duty under fortnightly basis not available during the forfeiture period - Held that:- A combined reading of the order passed by CESTAT and Elson Packaging Pvt. Limited, [2004 (4) TMI 137 - CESTAT, MUMBAI] clearly convey that during the forfeiture period duty had to be paid only through Account Current (PLA) and any default on that aspect will make the goods cleared as a case of clearance without payment of duty and other consequences and penalties as provided in the Central Excise Rules shall follow. The consequences of goods cleared without payment of duty on the said defaults will mean discharge of duty along with interest and also a liability to face penalty. Therefore, confirmation of demand and interest have been correctly made by Commissioner (Appeals) in his order in appeal. There is no doubt that appellant will be entitled to the credit what he has utilised in payment of Central Excise duty earlier when the entire default period duty and interest is paid in cash or through PLA. Equivalent penalty imposed - Held that:- Penalty is imposable under Rule 173Q (1) of Central Excise Rules, 1944 or Rule 25(1) of the Central Excise Rules 2001 because appellant's conduct has led to an act which is deemed to be clearances without payment of duty and also the act on the part of the appellant is liable to penalty. However, it is not obligatory to impose penalty equivalent to the duty demanded under Rule 173Q of the Central Excise Rules. As all the transactions were properly recorded by the appellant, therefore, a penalty of Rs.One lakh upon the appellant will meet the ends of justice as reduced from Rs.5,57,138/-.
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