2002 (1) TMI 242 - AT - Central Excise

Summary

Issues:
1. Imposition of penalty under Rule 173Q of the Central Excise Rules on the first appellant and the Assistant General Manager.
2. Justifiability of penalty imposition based on the gap between the date of cheque presentation and actual realization by the Revenue.
3. Interpretation of intention to evade payment of duty in the context of delayed payment of duty.

Analysis:
1. The judgment involves two appeals concerning the imposition of penalties under Rule 173Q of the Central Excise Rules on the first appellant, a company, and the Assistant General Manager. The Commissioner had imposed a penalty of Rs. 1 lakh on the company and Rs. 10,000 on the Assistant General Manager.

2. The main issue addressed in the judgment was the justifiability of imposing penalties based on the gap between the date of presentation of cheques to the bank and the actual realization of the amount by the Revenue. The appellants had cleared goods after presenting cheques towards duty deposit during bank holidays, following the established procedure. The Commissioner found it to be a case of delayed payment of duty rather than evasion, as there was no intention to evade payment of duty.

3. The judgment delves into the interpretation of intention to evade payment of duty in the context of delayed payment. The Commissioner's finding that there was no intention to evade payment of duty led to the conclusion that the imposition of penalties was not justifiable. The Tribunal agreed with this view and set aside the impugned order, allowing the appeals with consequential relief, if any.

In conclusion, the judgment focused on the application of penalties under Rule 173Q of the Central Excise Rules, emphasizing the importance of intention to evade payment of duty in cases of delayed payment. The decision highlighted the necessity of considering the circumstances and intentions of the parties involved before imposing penalties for non-compliance with duty payment timelines.