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2015 (6) TMI 1040 - CESTAT NEW DELHI

2015 (6) TMI 1040 - CESTAT NEW DELHI - 2016 (335) E.L.T. 157 (Tri. - Del.) - Non-payment of the Central Excise Duty liability - Confirmation of demand and penalty - Held that:- Duty liability has been discharged by the appellant on each and every clearance of the finished product from the factory by utilizing cenvat credit, such payment is in conformity with the above statutory provisions. Thus, confirmation of the duty demand by the authorities below is not in agreement with the statutory manda .....

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s not been paid by the appellant within the stipulated time, the provisions of Central Excise Rules, 2002 have been violated, for which penalty can be imposed under Rule 27 of the rules. Accordingly, penalty imposed in the adjudication order and confirmed in the impugned order are set aside and the same is restricted to ₹ 5,000/- under Rule 27 of the rules. - Since there is no element of mensrea in the present case, imposition of penalty on the Director of the company is not justified .....

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2,06,743/- in its ER-1 return. Out of the said declared duty liability, the appellant had paid ₹ 7,06,743/- within the stipulated time frame prescribed in Rule 8 (1) of the Central Excise Rules, 2002 and the balance amount of ₹ 5,00,000/- was paid through PLA on 08.09.2012 alongwith applicable rate of interest. For non-payment of the Central Excise Duty liability within the stipulated time frame, the Department initiated show cause proceedings for recovery of entire duty in terms of .....

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bunal. 2. The ld. Advocate Shri V.R. Sethi appearing for the appellant submits that the phrase without utilizing cenvat credit appearing in sub-rule (3A) of Rule 8 was declared invalid by the Hon ble Gujarat High Court in the case of Indsur Global Ltd. vs. Union of India reported in 2014 (310) ELT 833 (Guj.). According to the ld. Advocate, the effect of said sub-rule after deletion of the above phrase is to the effect that the cenvat credit can be utilized for payment of excise duty for each con .....

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the ld. Counsel for both sides and perused the records. 5. I find force in the submission of the ld. Advocate for the appellant that in view of deletion of the phrase without utilizing the cenvat credit in sub-rule (3A) of Rule 8, the outcome is that excise duty can be paid for each consignment at the time of removal by utilizing the cenvat credit. Since the duty liability has been discharged by the appellant on each and every clearance of the finished product from the factory by utilizing cenva .....

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