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2019 (4) TMI 888 - AT - Central ExciseDefault of payment of duty - Rule 8 of Central Excise Rules, 2002 - Suppression of facts - extended period of limitation - Held that:- The present case pertains to the default of payment of duty by the appellant for two periods i.e from September 2014 to October 2015 and for the period from February 2016 to February 2017 and the total duty which has been demanded from the appellant is ₹ 20,39,822/- for both the periods with equal penalty under Section 11AC of the Central Excise Act - non-payment of duty had arisen on account of freezing of the bank account owing to the family dispute and it is only the appellant who requested the Department to recover the duties directly from their bank account as recorded in the SCN itself; thereafter, the Department recovered an amount of ₹ 17,11,244/- from the bank account of the appellant. It is a case of default in the payment of duty as per sub-Rule 4 of Rule 8, the Department has power to recover the same in the manner as they are applicable for recovery of any duty or other sums payable to the Central Government. Imposition of penalty - Held that:- Circular of the Department dated 15.12.2003 also explains the position of law with regard to default in the payment of Excise Duty. Further, imposing the penalty by invoking Section 11AC of the Central Excise Act is not applicable in the present case because Section 11AC can only be applied if the provisions mentioned therein are satisfied whereas this is not the case where there is intentional evasion of duty or clandestine removal. The imposition of equal penalty under Section 11AC of the Central Excise Act is not sustainable in the facts and circumstances of this case and therefore, the imposition of penalty under Section 11AC is set aside, but since there was a default in the payment of duty, imposition of penalty of ₹ 5000/- under Rule 27 of the Central Excise Rules. Appeal disposed off.
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