2019 (6) TMI 1607 - CESTAT KOLKATA - Central Excise

Head Note / Extract:
Levy of penalty - failure to file monthly return - appellants have accepted the default, but have pleaded that the same was unintentional and prayed for setting aside the penalty - HELD THAT:- The proceedings were initiated for failure to file ER-6 monthly return for the period 2012-13, 2013-14 & 2014-15. The appellants were required to submit, within ten days from the close of each month, a monthly return in the Form specified by a Notification in respect of the information regarding the receipt and consumption of each principal inputs with reference to the quantity of final products manufactured by them to the Range Superintendent. This requirement was notified by Notification No.41/2004-CE (NT) dated 25.11.2004. Simultaneously, Notification No.39/04-CE (NT) dated 25.11.2004 was also issued, which extended the exemption from filing such return to the assessee, whose payment of excise duty through account current during preceding financial year, was less than ₹ 1.00 Crore. Subsequently, the expression “through account current” was omitted by Notification No.41/2008-CE (NT) dated 29.09.2008 - This Notification escaped the attention of the assessee, which resulted in failure to file ER-6 return upto March, 2016. The appellants have accepted the default, but have pleaded that the same was unintentional and there has not been any loss of revenue to the exchequer and accordingly, prayed for setting aside the penalties imposed. A lenient view can be taken and quantum of penalty can be reduced to meet the ends of justice and accordingly, the quantum of penalty reduced to ₹ 500/- per return for non-filing of each such return. The total amount of penalty would be ₹ 500/- X 36 ER-6 Returns under Rule 15A of Cenvat Credit Rules, 2004. Appeal allowed in part.