2008 (4) TMI 672 - AT - Central Excise

Summary

Issues Involved:
Failure to discharge duty liability by due date under Rule 8(4) of Central Excise Rules, 2001; Forfeiture of facility of payment of duty on monthly basis under Rule 8(1) of the said Rules; Applicability of previous tribunal decisions; Reduction of forfeiture period by Commissioner (Appeals).

Analysis:

The judgment concerns multiple appeals with a common issue of the Respondents failing to meet duty liability deadlines under Rule 8(4) of the Central Excise Rules, 2001. The Adjudicating Authority initially ordered a two-month forfeiture of the facility to pay duty monthly, starting from the order communication date. The Commissioner (Appeals) later modified this to one and a half months based on the circumstances of the case.

The learned DR argued that the Commissioner (Appeals) based the modification on a Tribunal decision in the case of Calcom Vision Ltd. v. CCE Meerut-I, which in turn referenced the case of Escorts JCB Ltd. v. CCE, New Delhi. However, it was contended that the latter case pertained to Section 11AC of the Central Excise Act, not directly relevant here.

Upon review and considering precedents, the Tribunal found that the forfeiture period of two months is not obligatory, as established in the Calcom Vision Ltd. case. The Commissioner (Appeals) had already reduced the forfeiture to one and a half months, taking into account the substantial duty payment made by the Respondents before the due date, leaving only a minor outstanding amount paid with interest beyond the deadline.

Given the circumstances and the substantial payment made on time, the Tribunal upheld the Commissioner (Appeals) decision to reduce the forfeiture period. Consequently, all appeals filed by the Revenue were rejected, affirming the Commissioner's ruling.

In conclusion, the judgment showcases a nuanced analysis of duty liability timelines, forfeiture of payment facilities, and the application of previous tribunal decisions to determine the appropriate penalty period in light of the Respondents' compliance efforts.