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2009 (12) TMI 798

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..... 7 dated 30-10-07 passed by Commissioner of Central Excise (Appeals), Lucknow. 2. The facts leading to this appeal by Revenue are, in brief, as under : 2.1 The respondent defaulted in payment of duty for the months of September, 2006 and October, 2006 and the total amount of duty short paid for these two months was Rs. 69,889/-. This duty was ultimately paid by the Respondent along with interes .....

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..... relying upon the Tribunal s judgment in the case of CCE, Allahabad v. R.K. Cigarettes (P) Ltd. reported in 2007 (79) RLT 804 (CESTAT-Del.) = 2007 (213) E.L.T. 367 (Tri.-Del.). Commissioner (Appeals) while setting aside the appeal observed that no penalty is attracted under Rule 25(1)(a) as there was no contravention of any of the provisions of the Central Excise Rules at the time of removal of th .....

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..... d in Central Excise Rules shall follow and therefore, in view of this, the penalty has been rightly imposed by the Deputy Commissioner under Rule 25(1)(a) of Central Excise Rules and the same has been wrongly set aside by the Commissioner (Appeals). Shri Singh also pleaded that in the case of CCE, Allahabad v. R.K. Cigarettes (P) Ltd. reported in 2007 (79) RLT 804 (CESTAT-Del.), relied upon by the .....

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..... h of the following month. As per sub-rule (2) of Rule 8, the duty of excise shall be deemed to have been paid for the purposes of these rules on the excisable goods removed in the manner provided under sub-rule (1) and the credit of such duty allowed, as provided by or under any rule. Sub-rule (3) of Rule 8 during this period provided that if the assessee fails to pay the amount of duty by due dat .....

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..... was not paid along with interest even during the grace period of one month from the due date i.e. till 5th December, 2006. In view of this, the clearances of the goods during these months in respect of which default in duty payment had taken place, would be treated as clearances without payment of duty and accordingly, the penal provisions of sub-rule (1)(a) of Rule 25 of Central Excise Rules, wo .....

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