TMI Blog2015 (10) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... Original dated 31.08.2012 that entire defaulted amount alongwith interest was paid by the appellant before issue of show cause notice. During the period of default, the duty was being paid by the appellant through CENVAT account - appeal is pertaining to imposition of penalty of ₹ 25 Lakh upon the appellant under Rule 25() of the Central Excise Rules, 2002. It is observed from Para 9 (v) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lved is regarding default in payments of duty as per Rule 8 (3A) of the Central Excise Rules, 2002, for the period 05.6.2011 to 12.12.2011. That the entire amount of ₹ 83,33,543/- alongwith interest of ₹ 4,71,098/- has been paid by the appellant through challans. It was the case of the appellant that at the time of clearance of the goods, the duty was being paid through CENVAT credit a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endu Patra (AR) appearing on behalf of the Revenue defended the order passed by the lower authority and argued that non payment of duty in cash at the time of clearance, will amount to clandestine removal and penalty has been correctly imposed under Rule 25 (1) of the Central Excise Rules, 2002. 4. Heard both sides and perused the case records. This appeal is pertaining to imposition of penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mechanism itself is breached. In such a mechanism to provide for withdrawal of CENVAT credit facility for paying the duty borders to creating a penalty. Insisting on an assessee in default to clear all consignments on payment of duty would be a perfectly legitimate measure. However, to insist that he must pay such duty without utilising CENVAT credit which is nothing but the duty on various input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 8(3A) with respect to portion without utilisation the CENVAT credit , has been rendered invalid, it cannot be held that penalty is required to be imposed in this case when duty was paid from CENVAT credit account. Accordingly, appeal filed by the appellant with respect to imposition of penalty is required to be allowed. 5. Appeal filed by the appellant is allowed by setting aside the pen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
