2018 (10) TMI 752 - AT - Central Excise

Amount paid belatedly - penalty - Rule 8(3A) of the Central Excise Rules, 2002 - Held that - The appellant is liable to pay the penalty amount for belated payment of duty on the basis of the month and the number of the days of delay - appeal allowed - decided in favor of appellant.

Summary

Issues:
Interpretation of Rule 8(3A) of the Central Excise Rules, 2002 regarding penalty calculation for belated duty payment.

Analysis:
The appeal was filed against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals), Raipur, for the period of August to December, 2016. The Appellants, engaged in manufacturing iron ore concentrate, had paid the duty belatedly and the penalty as per Rule 8(3A) of the Central Excise Rules, 2002. The dispute arose when the Department demanded the duty amount for the full month, while the Appellants had paid the penalty based on the actual days. The Appellants contended that they should receive the benefit for the broken period of the month. The Tribunal referred to an earlier case involving the same issue and cited judgments from the Madras High Court and the Allahabad High Court to support the interpretation of "part thereof" in Rule 8(3A) as "the actual number of days of delay." Consequently, the Tribunal held that the penalty amount for belated duty payment should be calculated based on the month and the number of days of delay, in line with the explanations provided by the High Courts. The impugned order was set aside, and the appeal was allowed.

In conclusion, the Tribunal, comprising Mr. Anil Choudhary and Mr. Bijay Kumar, Members, allowed the appeal filed by the Appellants, following their earlier decisions and the interpretations provided by the Madras High Court and the Allahabad High Court regarding the calculation of penalty for belated payment of duty under Rule 8(3A) of the Central Excise Rules, 2002. The Appellants were granted the benefit for the broken period of the month, and the duty amount was to be calculated based on the month and the actual days of delay.