9911796707
TMI Blog2009 (10) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... nuary, 2005 to December, 2005, they committed default. The duty for this period was belatedly paid. Before this payment, the department issued a showcause notice for recovery of duty with interest and for imposition of penalty. Interest on duty was sought to be levied at the rate of Rs. 1,000/- per day under Rule 8 on the amount of duty for the period January to March, 2005. Interest was also sought to be levied at the rate of 13% on the amount of duty for the period from April to December, 2005. A proposal for penalty was raised under Rule 25 of the Central Excise Rules. The notice also proposed to forfeit the facility of monthly payment of duty for a period of two months under Rule 8(3A) of the said Rules. These demands/proposals were con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... April, 2005 to December, 2005. 6. I impose penalty amounting to Rs. 5,000/- under Rule 27 of the Central Excise Rules, 2002 on the assessee, for repeated failure to file monthly return in proper form and within the time limit prescribed under Rule 12 of the Central Excise Rules, 2002 and sub-rule (5) of Rule 7 of the CENVAT Credit Rules, 2004 during the period from April, 2005 to December, 2005. 7. I impose penalty amounting to Rs. 5,000/- under Rule 27 of the Central Excise Rules, 2002 on the assessee, for not showing correct details of Education Cess in statutory accounts and returns filed by them during the period from January, 2005 to September, 2005. I also direct the assessee to show correct details about the Education Cess in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt, interest chargeable on delayed payment of duty was to be only at the rate of 2% per month (24% per annum), as notified by the Central Government under Section 11AB. In this scenario, the demand of interest at the rate of Rs. 1,000/- per day under Rule 8 on the amount of duty belatedly paid for the period from January to March, 2005 requires to be set aside and it is ordered accordingly. However, in terms of the Hon ble High Court s decision in Lucid s case, the assessee will have to pay interest at the rate prescribed under Section 11AB of the Act. In the result, it is ordered that interest at the rate of 13% per annum notified under Section 11AB during the material period be paid by the appellant on the amount of duty paid belatedly fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision of law for non-filing of return within the prescribed time limit. Equal amount of penalty was imposed under the same provision on the ground that the returns subsequently filed were not in the proper form. Again, equal amount of penalty was imposed under the same provision on the ground that the correct details of Education Cess etc. were not furnished in the returns. I find that there is no proposal in the showcause notice to impose penalty under Rule 27 at all. Hence, the above total penalty of Rs. 15,000/- imposed on the appellant under Rule 27 is beyond the scope of the showcause, notice. This penalty is set aside. 5. In the result, the appeal is disposed of by holding that the appellant is liable to pay interest on duty at t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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