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2009 (12) TMI 833 - AT - Central Excise
Issues:
1. Waiver of pre-deposit and stay of recovery in respect of penalty under Rule 8(3A) of the Central Excise Rules, 2002. 2. Interpretation of penalty provisions under Section 11AC of the Central Excise Act and Rule 8(3A) of the Central Excise Rules, 2002. Analysis: The judgment involves the application for waiver of pre-deposit and stay of recovery concerning a penalty imposed on the assessee under Rule 8(3A) of the Central Excise Rules, 2002. The assessee had paid the entire duty amount before the issuance of the show-cause notice, and interest on the duty was paid later. The Commissioner directed the assessee to pay additional interest and imposed a penalty under Rule 8(3A) of the Central Excise Rules, 2002. However, the Commissioner refrained from imposing a penalty under Section 11AC of the Central Excise Act, finding no deliberate attempt to evade duty by the assessee. The central issue addressed in the judgment is whether the imposition of a penalty under Rule 8(3A) of the Central Excise Rules, 2002 was justified. Rule 8(3A) provides for penalties on defaulters who fail to pay duty within 30 days from the due date. The Commissioner's decision to appropriate the duty paid by the assessee and the proposal to utilize both PLA and CENVAT account payments towards the demand of duty raised questions about the application of sub-rule (3A) of Rule 8. The adjudicating authority's action of virtually waiving the provisions of sub-rule (3A) led to the conclusion that there was no basis for imposing a penalty on the appellant under this rule. In conclusion, the judgment granted the waiver of pre-deposit and stay of recovery concerning the penalty amount imposed on the assessee under Rule 8(3A) of the Central Excise Rules, 2002. The decision was based on the interpretation of penalty provisions under Section 11AC of the Central Excise Act and Rule 8(3A) of the Central Excise Rules, 2002, emphasizing the absence of a valid ground for imposing a penalty under Rule 8(3A) in the given circumstances.
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