Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 1199 - AT - Central ExciseImposition of penalty - Rule 25 of the Central Excise Rules, 2002 and Rule 15(1) of CENVAT Credit Rules, 2004 for non-compliance of Rule 8,12 of Central Excise Rules, 2002 - Held that:- with regard to imposition of penalty under Rule 25 of Central Excise Rules, 2002 it is found that the Appellant has paid the tax along with interest even before the issuance of show cause notice and that there has been delay only in payment of duty by the Appellant and not default in payment of duty as alleged. The Appellant have admitted their duty liability in the ER-1 returns but have not paid the duty due to late receipt of money from their customers which have not been disputed by the revenue. Therefore, by applying the decision of Gujarat High Court in the case of Commissioner of Central Excise & Customs vs. Saurashtra Cements Ltd. [2010 (9) TMI 422 - GUJARAT HIGH COURT] which was affirmed by Hon'ble Supreme Court reported in [2014 (1) TMI 264 - SUPREME COURT OF INDIA], the penalty imposed under Rule 25 ibid is set aside. With regard to imposition of penalty under Rule 15(1) of CENVAT Credit Rules, 2004, it is found that the same has arisen out of the fact that the Appellant had violated Rule 8(3A) of Central Excise Rules, 2002 as regards payment of duty. I find that the law is settled as regards demand of duty/credit restriction on account of Rule 8(3A) of Central Excise Rules, 2002. Since Rule 8(3A) of Central Excise Rules, 2002 has been held constitutionally invalid; I find no other reason as to why CENVAT Credit should not be used for payment of duty. Hence the penalty levied under Rule 15(1) of CENVAT Credit Rules, 2004 is also liable to be set aside. - Decided in favour of appellant with consequential relief
|