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TMI Blog2006 (6) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... as been paying the duty regularly within the stipulated time. However, in so far as the payment of duty for the month of September was concerned, it was paid on 5th of November, 2005 instead of paying it before 5th of November, 2005 and according to the petitioner, this mistake was committed unintentionally by the company staff as they did not notice an amendment which was brought in Central Excise Rules, 2002 wherein sub-rule (3A) was added to Rule 8 with effect from 1st April, 2005. By this amendment, forfeiture of the facility was prescribed if the payment of the duty by the due date was not discharged within 30 days. Earlier to this amendment, instead of 30 days it used to be one month and the petitioner-company could not realize the difference between one month and 30 days, therefore there was a delay of one day in remitting the amount. Thereafter the petitioner-company paid duty regularly within time. On 2-2-2006 the 1st respondent passed an order inter alia forfeiting the facility given to the petitioner-company to pay the duty in monthly instalments under sub-rule (1) of Rule 8 of Central Excise Rules, 2002 for a period of two months from the date of communication of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 002 : Provided that where an assessee in the State of Gujarat is availing of the exemption under a notification based on the value of clearances in a financial year, the duty on goods cleared during the month of February, 2002 shall be paid by the 31st March, 2002. Explanation. - For removal of doubts, it is hereby clarified that the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date. 2. The duty of excise shall be deemed to have been paid for the purposes of these rules on the excisable goods removed in the manner provided under sub-rule (1) and the credit of such duty allowed, as provided by or under any rule. 3. If the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with an interest at the rate of two per cent per month or rupees one thousand per day, whichever is higher, for the period starting with the first day after due date till the date of actual payment of the outstanding amount : Provided that the total amount of interest payable in terms of this sub-rule shall not exceed the amount of duty which h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (B) The interest payable is the higher of the amounts (A) and (B) subject to a maximum of the amount of default = Rs. 10,000. 4. The provisions of Section 11 of the Act shall be applicable for recovery of the duty as assessed under Rule 6 and the interest under sub-rule (3) in the same manner as they are applicable for recovery of any duty or other sums payable to the Central Government. AMENDED RULE 8 OF CENTRAL EXCISE RULES, 2002 Notification No. 17/2005- Central Excise (N.T.) dated the 31st March, 2005 In exercise of the powers conferred by Section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government, hereby makes the following rules further to amend the Central Excise Rules, 2002, namely :- 1. (1) These rules may be called the Central Excise (Second Amendment) Rules, 2005. (2) They shall come into force on and from 1st April, 2005. 2. In the Central Excise Rules, 2002 (hereinafter referred to as the said Rules), in rule 8,- A. for sub-rule (3), and the proviso and the illustrations thereto, the following shall be substituted namely :- "(3) If the assessee fails to pay the amount of duty by due date, he shall be liable to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts are admitted, an enquiry would be an empty formality. Even the principle of estoppel will apply." 5. In coming to this conclusion, the Supreme Court also relied on a judgment reported in Gurjeewan Garewal (Dr.) v. Dr. Sumitra Dash . It held :- "The principles of natural justice are required to be complied with having regard to the fact situation obtaining therein. It cannot be put in a straitjacket formula. It cannot be applied in a vacuum without reference to the relevant facts and circumstances of the case." 6. Similarly in Karnataka SRTC v. S.G. Kotturappa the Supreme Court held : "The question as to what extent, principles of natural justice are required to be complied with would depend upon the fact situation obtaining in each case. The principles of natural justice cannot be applied in vacuum. They cannot be put in any straitjacket formula. The principles of natural justice are furthermore not required to be complied with when it will lead to an empty formality. What is needed for the employer in a case of termination of services of an employee is to apply the objective criteria for arriving at the subjective satisfaction. If the criteria required for arriving at an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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