2015 (7) TMI 1406 - AT - Central Excise

Default in payment of duty as per Rule 8(3A) of the Central Excise Rules, 2002 - bar on utilization of CENVAT Credit Account for payment of duty during the defaulted period - levy of penalty - HELD THAT - As the appellant have already paid the amount in dispute along with interest, therefore, proceedings under Rule 8(3A) of Central Excise Rules, 2002 are not sustainable - But penalty under Rule 27 of Central Excise Rules, 2002 is imposable on the main appellant. Therefore, the penalties imposed on the appellants are set aside - only the penalty of Rs. 5000 on the main appellant i.e. M/s. Baba Vishwakarma Engineering Co. Pvt. Ltd. is confirmed. Appeal allowed in part.

Summary

The appellate tribunal in New Delhi heard a case where the appellant failed to pay duty on time during a specific period. A demand of Rs. 1,58,56,152/- was confirmed against the main appellant, along with penalties. The tribunal found that since the appellant had already paid the disputed amount with interest, proceedings under Rule 8(3A) were not sustainable. However, a penalty of Rs. 5000 was imposed on the main appellant under Rule 27. The penalties on the appellants were set aside, and the appeals were disposed of.