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2016 (12) TMI 1519 - AT - Central ExciseImposition of penalty u/r 25 of the Central Excise Rules 2002 - The appellants have defaulted monthly payment of excise duty on due date in respect of the clearance of their final product for more than one month - demand on the ground that during the default period the duty should have been paid on consignment basis and also from PLA and not by utilizing the cenvat credit - Held that: - The only lapse on the part of the appellants was they were supposed to pay duty through PLA on consignment basis. In this fact, it cannot be said that the appellants had any intention to evade payment of duty as each and every consignment was undisputedly cleared on the invoices issued under Rule 11 of Central Excise Rules, 2002 - Since the appellants have paid the duty even from cenvat account and the department has accepted the said payment for the reason that the said payment of duty, therefore the only lapse at present is that the appellants have not paid the duty on consignment basis but on monthly basis. For this lapse in my considered view, the penalty under Rule 25(1) (a) cannot be imposed. However there is no doubt that the appellants have contravened the provision inasmuch as they have paid duty on monthly basis as against requirement of payment of duty on consignment basis. Therefore they are liable for penalties but not under Rule 25(1) (a) but under Rule 27 of the Central Excise Rules. As per my above discussion, I reduce the penalties from ₹ 1lakh each to ₹ 5,000/- each. Appeal disposed off - decided partly in favor of appellant.
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