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2013 (9) TMI 518 - CESTAT NEW DELHIPenalty when there is contravention of Rule 8(3A) of Central Excise Rules –Facility to pay monthly duty was forfeited because non-payment of duty by the due date under Rule 8 of the Central Excise Rules, 2002 – Held that:- When the period of delay in discharge of monthly duty liability by the due date exceeds 30 days from the due date, the assessee looses the facility to pay duty on monthly basis and is required to pay duty on each clearance and that too through PLA without utilising the Cenvat credit. Rule 8 (3A) specifically provides that if during the forfeiture period, the duty is not paid consignmentwise or is paid by utilising Cenvat credit in respect of certain goods cleared, such clearances would be deemed to have been made without payment of duty and all the consequences for the same as prescribed in the Central Excise Rules, would follow. In the instant case, even during forfeiture period, the duty had not been paid through PLA and had been paid through Cenvat credit, the appellant have been correctly directed to pay the same through PLA. Once the duty is paid through PLA, they would be entitled for re-credit of Cenvat credit earlier utilized - Goods were cleared on payment of duty through Cenvat credit account, the same would be deemed to have been cleared without payment of duty and, hence, the provisions of Rule 25 would be attracted – Decided against the Assessee. Penalty u/r 25 for delay in filing return E.R.-1 – Held that:- Delay in filing of ER-1 return, would attract penalty under Rule 27 not under Rule 25 and therefore Penalty of Rs.2000/- will be imposed.
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