2011 (1) TMI 1329 - AT - Central Excise

Summary

Issues:
Revenue's appeal against Order-in-Appeal No. 38/2009 for duty default and penalty imposition.

Analysis:
The appeal pertains to a case where the respondent defaulted in duty payment for May and June 2007, subsequently paying the due amount with interest. The lower authorities observed the utilization of Cenvat credit during the default period, leading to a duty demand and penalty imposition. The Commissioner (Appeals) set aside the duty demand, acknowledging the correct payment during the default period but upheld the penalty. The respondent did not contest the penalty imposition, leading to the current appeal by the Revenue.

The Tribunal noted that the respondent utilized eligible Cenvat credit for duty payment in subsequent periods, including the default months. The Commissioner (Appeals) based the decision on precedents like Lloyds Steel Industries Ltd. and decisions from the Tribunal. The Tribunal concurred with the Commissioner's decision, emphasizing the adherence to established legal principles by various judicial forums. Consequently, the Tribunal upheld the Commissioner's order, rejecting the Revenue's appeal.

In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the Commissioner (Appeals) decision based on the correct application of legal precedents and established principles. The judgment highlights the importance of adhering to legal interpretations set by higher judicial authorities in resolving duty default cases.