9911796707
TMI Blog2011 (2) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... emption are required to file a monthly return in ER-1 format. In this case, the appellant even after switching over from SSI exemption to payment of normal duty w.e.f. 1/4/06 continued to file quarterly return for about 14 months till they were asked by the Department to file the monthly return. For the failure of the appellant to file the monthly return, the Department initiated proceeding for imposition of penalty under Rule 27 and the Assistant Commissioner vide order-in-original dated 27/03/08 imposed total penalty of Rs. 70,000/- on the appellant Rs. 5,000/- for each failure to file the monthly return. This penalty was imposed under Rule 27 of the Central Excise Rules, 2002. The Assistant Commissioner s order was upheld by the CCE (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in view of this judgment, there was no justification for imposition of penalty on the appellant. 2.2 Shri S.K. Bhaskar, the learned Departmental Representative, defending the impugned order and reiterating the Commissioner (Appeals)'s findings pleaded that the appellant on switching over from SSI exemption scheme to normal duty payment should have filed the monthly returns in ER-1 format, that this default continued for more than 12 months for which there is no explanation, that under Rule 27 of the Central Excise Rules, penalty is imposable for contravention of any provisions of the Central Excise Rules for which no specific penalty has been prescribed under any other rules, that since there is contravention of the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities have imposed total penalty of Rs. 70,000/- i.e. Rs. 5,000/- each for each failure, which is too harsh and there is no justification for such penalty, as during this period, the quarterly returns were being acknowledged by the Range Officers and they did not raise any objection or told the assessee to file monthly return. Moreover, even in quarterly returns, all the details about the goods manufactured and cleared were there. In view of this, while upholding that there is contravention of the provisions of Rule 12 (1) of Central Excise Rules, 2002 attracting penalty under Rule 27, and upholding the imposition of penalty under Rule 27 of the Central Excise Rules, 1944, the quantum of penalty is reduced to Rs. 5,000/- (Rupees Five ..... X X X X Extracts X X X X X X X X Extracts X X X X
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