TaxTMI 
TaxTMI 
2009 (10) TMI 724
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....ise Rules, 2002. However, for the period from January, 2005 to December, 2005, they committed default. The duty for this period was belatedly paid. Before this payment, the department issued a showcause notice for recovery of duty with interest and for imposition of penalty. Interest on duty was sought to be levied at the rate of Rs. 1,000/- per day under Rule 8 on the amount of duty for the period January to March, 2005. Interest was also sought to be levied at the rate of 13% on the amount of duty for the period from April to December, 2005. A proposal for penalty was raised under Rule 25 of the Central Excise Rules. The notice also proposed to forfeit the facility of monthly payment of duty for a period of two months under Rule 8(3A) of ....
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.... Excise Rules, 2002 during the period from April, 2005 to December, 2005. 6. I impose penalty amounting to Rs. 5,000/- under Rule 27 of the Central Excise Rules, 2002 on the assessee, for repeated failure to file monthly return in proper form and within the time limit prescribed under Rule 12 of the Central Excise Rules, 2002 and sub-rule (5) of Rule 7 of the CENVAT Credit Rules, 2004 during the period from April, 2005 to December, 2005. 7. I impose penalty amounting to Rs. 5,000/- under Rule 27 of the Central Excise Rules, 2002 on the assessee, for not showing correct details of Education Cess in statutory accounts and returns filed by them during the period from January, 2005 to September, 2005. I also direct the assessee to show correc....
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....dmark decision of the Hon'ble High Court, interest chargeable on delayed payment of duty was to be only at the rate of 2% per month (24% per annum), as notified by the Central Government under Section 11AB. In this scenario, the demand of interest at the rate of Rs. 1,000/- per day under Rule 8 on the amount of duty belatedly paid for the period from January to March, 2005 requires to be set aside and it is ordered accordingly. However, in terms of the Hon'ble High Court's decision in Lucid's case, the assessee will have to pay interest at the rate prescribed under Section 11AB of the Act. In the result, it is ordered that interest at the rate of 13% per annum notified under Section 11AB during the material period be paid by the appellant o....