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2013 (11) TMI 292 - AT - Central ExcisePenalty Delay in duty payment Waiver of Pre-deposit under Rule 25(1) of the Central Excise Rules - Held that - There was No intention on the part of the respondent assessee to evade any payment of duty Following COMMISSIONER OF C. EX. & CUSTOMS Versus SAURASHTRA CEMENT LTD 2010 (9) TMI 422 - GUJARAT HIGH COURT - the issue involved in this case is challenge towards the imposition of penalties under Rule 25 of the Central Excise Rules, 2002, prima facie the issue seems to be covered in the favour of the assessee - the application for the waiver of pre-deposit of the amounts allowed till the disposal Stay granted.
Issues:
Waiver of pre-deposit of penalty under Rule 25(1) of the Central Excise Rules, 2002 for defaulting payments. Analysis: The judgment pertains to a stay petition seeking the waiver of pre-deposit of a penalty of Rs.25 lakhs imposed on the appellant for defaulting payments under Rule 8 of the Central Excise Rules, 2002. The appellant had discharged the entire duty liability along with interest, which was defaulted for forty days. The adjudicating authority had already appropriated the amount paid by the appellant along with interest. The appellant's counsel argued that the issue was covered by a decision of the Hon'ble High Court of Gujarat and similar issues were addressed by the Tribunal in other cases. The Tribunal found that the issue involved challenging the imposition of penalties under Rule 25 of the Central Excise Rules, 2002, and prima facie believed it to be in favor of the assessee based on previous decisions. The Departmental Representative (D.R.) mentioned a contrary view, which could be presented at the final disposal of the appeal. The Tribunal allowed the application for the waiver of pre-deposit and stayed the recovery of the amounts until the appeal's disposal. The matter was directed to be listed for disposal before a single Member Bench, indicating that it could be decided by a single Member Court. This judgment addresses the crucial issue of waiver of pre-deposit of penalty under Rule 25(1) of the Central Excise Rules, 2002 for defaulting payments. The Tribunal considered the appellant's compliance with the duty liability and interest payment, the arguments presented by the appellant's counsel citing relevant precedents, and the possibility of a contrary view from the Departmental Representative. The Tribunal's decision to grant the waiver and stay the recovery of amounts until the appeal's final disposal demonstrates a balanced approach to the issue at hand. The directive to list the matter before a single Member Bench indicates the procedural step to ensure a timely and efficient resolution of the case. Overall, the judgment reflects a thorough consideration of the legal and factual aspects surrounding the waiver of pre-deposit of penalty in the context of Central Excise Rules, 2002, highlighting the importance of precedent and procedural fairness in such matters.
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