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2017 (12) TMI 326 - AT - Central ExciseDefault in monthly payment of dues - rule 8(3A) of Central Excise Rules 2002 - contention of the appellant that the show cause notice was issued on 27th August 2008 when the restriction imposed in rule 8(3) of Central Excise Rules, 2002 was no longer application to them - scope and intent of rule 8 of the Central Excise Rules, 2002 - penalty u/r 15(2) of CCR - Held that: - It is clear from the records that appellant had defaulted in the payment of dues during the months of May, August and September, 2007 and that the privilege of consolidated monthly discharge of duty liability was no longer available to them till November 2007 when the outstanding were erased. These facts are not disputed by appellant. Cognizance was taken of those derelictions about nine months later when the show cause notice for recovery was issued. Though the appellant had debited CENVAT account for discharging a portion of the duty liability that transaction had been received subsequently. The proposal in the show cause notice show cause notice for recovery of the amount paid through debit in CENVAT credit has been rendered infructuous as also the appropriateness of the said amount in the order of the original authority. Therefore, all that remains insofar this appeal is concerned are the penalties imposed under rule 15(2) and rule 25 of the CENVAT Credit Rules, 2004 to which reference may be made here. In view of the fact payment had been made in full along with interest before the issue of show cause notice the penalties imposed by the original authority and affirmed in the impugned order are set aside Appeal allowed - decided in favor of appellant.
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