TMI Blog2014 (11) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... - was honoured; 18 cheques for the payment of duty in the amount of ₹ 34.37 lacs were not honoured due to insufficiency of funds. But, what reflects on the willful misstatement of the assessee is that, in the case of the balance 13 cheques, the assessee produced counterfoils of the Bank with stamps and it was, on enquiry, found that the cheques were never presented with the Bank at all for the payment of duty. Provisions of Rule 25 of the Rules were attracted since there was an intent to evade the payment of duty. For these reasons, prima facie, we are of the view that no substantial question of law would arise in the appeal. However, in order to facilitate compliance with the order of the Tribunal, we extend time for making deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues, the assessee produced counterfoils of the Bank with stamps to evidence payment of duty but, on enquiry, it was found that the cheques had not been presented to the Bank at all for payment. During the course of the adjudication proceedings, following the issuance of a notice to show cause, the Commissioner, Central Excise confirmed a duty demand of ₹ 88.80 lacs together with interest under Section 11AB of the Central Excise Act, 19442 and imposed a penalty in the like amount under Rule 25(1) of the Central Excise Rules, 20023 read with Section 11AC of the Act besides personal penalty of ₹ 10 lacs on the Managing Director under Rule 26 of the Rules. The submission which has been urged on behalf of the assessee is that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing amount alongwith interest at the rate specified by the Central Government by a notification issued under Section 11AB of the Act. Moreover, sub-rule 3A of the Rules provides that where there is a default in the payment of duty beyond 30 days from the due date, as prescribed in sub-rule (1), the assessee shall pay the excise duty for each consignment at the time of removal, without utilizing the cenvat credit till the date the outstanding amount including interest thereon is paid. In the event of failure, it shall be deemed that the goods have been cleared without payment of duty and the consequences and penalties as provided in the Rules have to follow. In the present case, it is not in dispute that out of the total duty demand of &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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