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2016 (10) TMI 645 - AT - Central ExciseDemand of duty - Rule 8 of Central Excise Rules, 2001 - the facility of fortnightly payment of duty and payment through RG 23A Part II for a period two months or till the deposit of defaulted amount which ever later was withdrawn - appellant took credit in their PLA account without actually deposit of the same through TR-6 challan – manipulation of account current and misleading – Held that: - the appellant has paid whole of the defaulted amount alongwith interest on 17.10.2001. These facts are evident from RT-12 returns and the same has not been disputed by the adjudicating authority. In that circumstance, as the appellant has made the whole of dues within one month, therefore, the appellant is entitled to utilize their cenvat credit account for payment of duty with effect from 24.11.2001 - the appellant started utilising the account current with effect from 18.1.2002, in that circumstance, the appellant has not contravened the provisions of Rule 8(3A) of the Central Excise Rules, 2001 by utilizing the credit account for payment of duty with effect from 18.1.2002, therefore, the demand of ₹ 1,69,38,241/- is not sustainable - Demand set aside - no penalty imposable. Manipulation of account current - fraudulent credit taken in account current on TR-6 challan and an amount of ₹ 1,69,38,241 has been utilized by the appellant from their cenvat credit account for payment of duty – demand of said amount along with interest and imposition of penalty – Held that: - the appellants were receiving the communication from their head office with regard to the payment of duty through TR-6 challan telephonically wrongly and therefore, they have taken the credit i.e .due to mistake of the concerned official - although there may be mistake of the appellants but the appellants cannot take the benefit of the same as they have taken the credit in the PLA without making payment. In the circumstances, the penalties are imposable on the appellants. Further, the whole of the amount in dispute was paid alongwith interest before issuance of show cause notice, thus, the penalty is reduced to 25% of ₹ 1,63,00,000/- Imposition of penalties on co-appellants – Held that: - co-appellants are the responsible officials of the appellant company. They have admitted their mistake, in that circumstance, the imposition of nominal penalty on both the appellants shall meet the end of justice - the penalties on both the appellants confirmed for their mistake to the tune of ₹ 50,000/- Appeal disposed off – decided partly in favor of appellants.
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