2009 (11) TMI 806 - AT - Central Excise

Summary

Issues involved: Appeal against penalty imposed for delay in payment of duty under Rule 8(3) of the Central Excise Rules, 2002.

Summary:
The appeal was filed against the penalty imposed on the respondent for failing to pay duty on time, as per the order of the Commissioner (Appeals) dated 4-10-07. The original authority held that due to the delay in payment of dues, the clearances were deemed as not duty paid, leading to the imposition of a penalty. However, the Commissioner (Appeals) set aside the penalty.

The learned DR argued that the respondent attracted penal provisions by not paying duty on time and requested setting aside the Commissioner (Appeals) order. After considering the submissions and records, it was noted that there was a delay in payment of dues, but it was not a case of unaccounted production or clandestine removal. The goods were cleared with proper documentation and monthly returns were submitted. While the delay in payment did attract Rule 8(3) provisions, treating the case as involving suppression or misstatement was deemed unnecessary.

The order of the Commissioner (Appeals) was set aside, and the original authority's decision was restored. The penalty imposed under Rule 25 was reduced to Rs. 5000 under Rule 27 of the Central Excise Rules, 2002. The appeal was disposed of accordingly.