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TMI Blog2015 (12) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment seeking recovery of the duty amount together with interest and imposition of penalty under Rule 25 & Rule 27 of the Central Excise Rules. The SCN was adjudicated vide order dated 30.11.2012, wherein Rs. 1,67,717/-towards duty liability was confirmed and the amount already deposited by the appellant was appropriated. Besides, equal amount of penalty under Rule 25 and Rs. 20,000/- under Rule 27 of the Central Excise Rules, 2002 have also been imposed in the said order. In appeal, the Commissioner (Appeals) has reduced the quantum of penalty under Rule 25 to Rs. 50,000/- and dropped the penalty imposed under Rule 27. Imposition of penalty amount under Rule 25 is the subject matter of present dispute. 2. The Ld. Advocate Miss Surabhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ically closed for all practical purposes. Thus, I am of the view that issuance of SCN and adjudication of the matter in imposing the penalty under Central Excise Rules was not justified in the circumstances of the case. Further, in absence of suppression, misstatement, collusions etc., penal provisions contained in Rule 25 of the Central Excise Rules, 2002 cannot be invoked, justifying imposition of penalty. It is an admitted fact on record that the authorities below have not specifically observed that non-payment of duty within the prescribed time limit is attributable to the ingredients mentioned in the said rule. Thus, I am of the view that imposition of penalty under Rule 25 is not legal and proper. In this context, the Hon'ble Guja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal held that invocation of Rule 25 for imposition of penalty for delayed deposit of duty is not in accordance with law. 17. It is also to be borne in mind that Rule 25 starts with the word "Subject to the provisions of Section 11AC.....", Section 11AC of the Central Excise Act deals with penalty for short levy or non-levy of duty in certain cases. It says that where any duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded by reasons of fraud, collusion or any willful misstatement or suppression of facts, or contravention of any of the provisions of this Act or of the Rules made there under with intent to evade payment of duty, the person who is liable to pay duty as determined under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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