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2013 (8) TMI 790 - AT - Central ExciseDefault in Payment of Duty even in Grace Period - Penalty u/s 11A and 11AC - Whether a penalty equal to the illegally utilized CENVAT credit could have been imposed on the assessee under Rule 15(2) of the CENVAT Credit Rules, 2004 - The assesse committed default in payment of duty for the period upto 5th January 2009 - They failed to take even the benefit of grace period prescribed under Rule 8(3) of the Central Excise Rules – Held that:- The conduct of the assesse directly attracted Section 11AC of the Act - For the period after 5th January 2009, the assesse chose to utilize CENVAT credit for payment of duty on consignment wise clearances of goods - The conduct amounted to non-payment of duty on such goods thereby attracting Section 11A for recovery and Section 11AC for penalty. The intent to evade payment of duty in the prescribed manner is common to both the above ingredients viz. wilful mis-statement of facts and contravention of a rule - Rule 15(2) clearly provides that, in such situations, the manufacturer shall also be liable to pay penalty in terms of provisions of Section 11AC of the Act - the assesse had failed to substantiate their case against the penalty imposed on them under Rule 15(2) read with Section 11AC – Appeal Dismissed.
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