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2016 (5) TMI 995 - AT - Central ExciseImposition of penalty - Rule 25 (1) (a) and (d) of Central Excise Rules, 2002 - Availed value based SSI exemption under Notification No. 8/2003-CE dated 1/3/2003 - Appellant deposited entire amount of short levy alongwith interest as soon as mistake was pointed out - Held that:- there is nothing on record to suggest as to why appellant was under the impression that SSI benefit under Notification No. 8/2003-CE was admissible to them during the financial year 2009-2010. Only the appellant was aware that value of clearances during the financial year 2008 & 2009 have crossed ₹ 4.00 crores and that appellant is not eligible to SSI exemption during 2009-10. By not discharging the appropriate Central Excise duty, the Central Excise Rules have been violated as per the penal provisions contained in Rule 25 (1) (a) & (d) of the Central Excise Rules, 1944. The conduct of the appellant by not resorting to payment of Central Excise duty during the relevant period indicates intent to evade Central Excise duty which could have escaped had it not been detected by departmental officers. Therefore, the provisions contained in Section 11A (2B) of the Central Excise Rules, 1944, applicable at the relevant time were not applicable to the case of the appellant. At the same time it is observed that penalty imposed by the lower authorities is not equivalent to the 100% of the duty sought to be evaded by the appellant. Penalty imposed is roughly 25% of the duty sought to be evaded and is justified. - Decided against the appellant
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