2003 (4) TMI 150 - AT - Central Excise

Summary

Issues involved:
1. Withdrawal of facility to pay Central Excise duty on a fortnightly basis.
2. Debiting duty from Cenvat account instead of PLA account.
3. Confirmation of interest and imposition of personal penalty.
4. Justification of interest and penalty in the case.

Analysis:
1. The appellant's facility to pay duty on a fortnightly basis was withdrawn due to delays in payment, leading to duty payment on a consignment basis. The appellant failed to pay duty from their account current, resulting in clearances deemed without payment of duty, as per Rule 173G(e).
2. The appellant argued that they later debited the confirmed amount from their PLA to Cenvat account, questioning the interest confirmation since the duty was paid from the Cenvat account. The Revenue contended that failure to pay duty from the PLA implies clearances without payment, attracting penalties under Central Excise Rules.
3. The Tribunal upheld the authorities' decision, emphasizing that duty payment through PLA is crucial. The appellant's failure to pay through PLA led to interest liability under Rule 173G(d) at 24% per annum. Despite later payments, interest and penalties were justified as per the law's provisions.
4. The Tribunal acknowledged the appellant's payments but reduced the penalty considering the circumstances. The penalty was reduced to Rs. 50,000, as the appellant had paid the delayed amount through Cenvat and PLA during the relevant period, indicating no benefit from the payment mode. The appeal was disposed of with the upheld duty and interest payment, and a reduced penalty amount.