9911796707
TMI Blog2009 (3) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... . Shri S.R. Prasad, SDR, for the Respondent. [Order]. - After hearing both sides, I find that the appellants being a small scale unit, was entitled to pay the duty on monthly basis. The said duty was required to be paid by 5th day of the following month. During May 2007, the appellants defaulted in payment of such duty, in terms of facilities available to them as per the provisions of Rule 8 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n relation to rules shall follow. He confirmed the duty demand of Rs. 3,62,619/- against the appellant and imposed equivalent amount of penalty in terms of Section 11AC of the Central Excise Act and Rule 25 of Central Excise Rules, 2002. 2. After hearing the arguments from both sides, I find that the provisions of Rule 83(A) are very clear and once the assessee defaults the payment of duty i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , I find that the sub-rule 8(3A) is to the effect that in case of failure, the goods cleared have to be deemed as having been cleared without payment of duty and the consequences and penalties as provided in Rules shall follow. As such, it is seen that the penalties provided in Central Excise Rules would apply and not under Section 11AC as has been done by Commissioner (Appeals). Rule 25 provides ..... X X X X Extracts X X X X X X X X Extracts X X X X
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