9911796707
TMI Blog2003 (1) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... re that, the appellant is a manufacturer of iron and steel re-rolled products. As per Rule 8 of Central Excise Rules, 2002, every assessee is permitted to pay the duty liability in two instalments, by 20th of each month and 5th of the following month. 2.1 The following table shows the belated/non-payment of the instalments in due dates. (a) 2nd fortnight of May, 2002 - paid with a delay of 2 days (b) 2nd fortnight of June, 2002 - paid with a delay of 3 days (c) 1st fortnight of July, 2002 - paid with a delay of 18 days (d) 2nd fortnight of July, 2002 - not paid. 2.2 The Joint Commissioner of Central Excise, Chennai V Division has ordered the forfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant filed three appeals and stay petitions as detailed in tabular column above. In the grounds of appeal they contended that :- 3.1 The order/decision made by the Joint Commissioner of CE, Chennai V Division, Chennai II Commissionerate, dated 26-9-2002 is contrary to law, weight of evidence and probabilities of the case. 3.2 Violation of Principles of Natural Justice : As laid down by the Hon ble Punjab and Haryana High Court, Division Bench in the decision reported in Krishna Engineering Works Ltd. v. U.O.I. - 2001 (134) E.L.T. 14 (P H), the facility of payment of duty on fortnightly basis to be forfeited only after affording an opportunity of hearing to the party. The decision is directly on the issue in favour of the appellant. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the officer were to pass an order, it can take effect only concurrently (simultaneously) and not to have the effect of continuous 8 months. 3.6 Payments made : The appellant had discharged the liability due, and the interest amount. In such circumstances, the withdrawal of the facility is liable to be cancelled. 3.7 Regarding the period of withdrawal of the facility ordered for 1-10-2002 to 30-11-2002, it has already come to an end and the appellant did not file any appeal relating to that period. 3.8 They prayed to set aside the impugned proceedings issued by the Joint Commissioner of Central Excise, Chennai V Division, Chennai II Commissionerate in C. No. IV/16/271/2002, dated 26-9-2002 and thus render justice. 4. Personal heari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of natural justice - Rule 49 (1) read with rule 173G of CER, 1944 . 6. However on identical issue the Honourable High Court of Delhi in the case of Jindal Industries v. Union of India - 2002 (145) E.L.T. 508 (Delhi) has held : Para 12. In the reply it is mentioned that according to the Trade Notice No. 39/2000, dated 6-10-2000 if the duty payable is not paid by the specific date, in terms of Rule 173G(1) of the Central Excise Rules, 1944 there would be no case for issue of show cause notice under Sec. 11A of the Central Excise Act. Therefore, the Deputy Commissioner, Customs and Central Excise has acted within the Four Corners of law in passing the order dated 17-3-2001..... Para 20. We have heard learned Counsel for the parties at le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - instance of default in payment by due dates and instructions on measures to be taken. 8. The relevant portion of the instructions reads as follows, Where the manufacturer fails to pay the amount of duty by the due date, the outstanding amount is the duty due to the exchequer pending in arrears. For recovery of this outstanding amount no proceedings in terms of Sec. 11A by issue of show cause notice, determination of dues, etc., would be necessary as the duty payable is already admitted by the assessee... From the case records it becomes evident that the appellant defaulted payments during the financial year 2002-2003 for the payment due for the second fortnight of April, 2002 and the defaulted amount was paid by the appellant afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creates an upsetting effect on industry and economic life. Government are run on public funds and if large amounts are blocked in pending litigation, it becomes difficult for Government to run and it becomes oppressive to people..... 9. In the interests of justice and fair play it will be appropriate if the three impugned orders would be in force starting from two months from the date of communication of the order passed by the lower authority and not continuously as ordered as per Rule 8(4)(ii) of CER, 1944. Further, the department is at liberty to order the forfeiture of deferred payment of duty till such date on which all dues are paid as per Rule 8(4)(ii) of CER, 2002. The appeals are allowed as modified to the above extent and is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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