2012 (4) TMI 636 - AT - Central Excise

Summary

Issues involved: Default in monthly payment of duties, utilization of cenvat credit, imposition of penalty under Rule 25 or Rule 27.

Default in Payment of Duties:
- Three appellants defaulted in monthly payment of duties from October 2007 to March 2008 beyond thirty days.
- Appellants cleared goods without duty payment from the current account, contrary to Rule 8(3A) of Central Excise Rules, 2002.
- Proceedings initiated resulted in duty demand confirmation and penalty imposition equal to the duty amount in default.

Utilization of Cenvat Credit:
- Tribunal remanded the matter to verify if duty was paid from PLA, which would affect penalty imposition.
- Appellants claimed duty payment from PLA, but failed to substantiate it.
- Tribunal's direction based on previous cases held that penalty under Rule 27 should apply if duty paid from cenvat credit account.

Imposition of Penalty under Rule 25 or Rule 27:
- Commissioner (Appeals) distinguished previous Tribunal decisions on penalty imposition under Rule 25 or Rule 27.
- Issue focused on correctness of the distinction made by Commissioner (Appeals) in applying the law declared by Tribunal in previous cases.
- Tribunal order's finality required lower authorities to follow the direction on penalty imposition, leading to setting aside of penalty under Rule 25 and confirming penalty of Rs. 5,000 each under Rule 27 for each show cause notice.

This judgment addressed the default in duty payment, utilization of cenvat credit, and the appropriate penalty imposition under Rule 25 or Rule 27 based on the specific circumstances and legal provisions involved in the case.