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2015 (1) TMI 167 - AT - Central ExcisePenalty under Rule 25 of the Central Excise Rules, 2002 - on four occasions the respondent could not pay duty in time but they on their own paid the duty along with interest for the period they defaulted - Commissioner (Appeals) he dropped, the penalty on the premise that the provisions of Section 11AC of the Central Excise Act, 1944 were not invoked in the facts of the case which is prime condition for imposition of penalty - Held that:- Commissioner (Appeals) dropped the penalty on the premise that provisions of Section 11AC of the Act have not been invoked. There is no finding of the lower authorities that the respondent has not paid the duty in time by way of fraud, collusion, misstatement, suppression of fact or contravention of provisions of Act/Rules with an intend to evade payment of duty, to invoke the provisions of Section 11AC of the Act. When these findings are not there, therefore the provisions of Rule 25 cannot be invoked. Further, the case law relied upon by the ld. AR for imposition of penalty under Rule 27 ibid relevant to the facts of this case. As in that case, the lower authorities imposed the penalty under Rule 25 ibid. But in this case, the penalty under Rule 25 ibid is dropped. Further, on perusal of the record, I find that there is no prayer in the appeal to impose penalty under Rule 25 ibid. Therefore, at this stage, the prayer for imposition of penalty under Rule 27 cannot be accepted. - Decided against Revenue.
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