2010 (12) TMI 316

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ) of Central Excise Rules 2002 - the goods cleared in December, 2006 on which the duty has not been paid by the due date is offending goods and the penal action and consequences follow - appellant submits that due to financial crisis they defaulted in payment of duty in respective clearances made in December, 2006 but they have followed the restrictions prescribed under Rule 8(3A) by paying duty o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... only in June, 2007. During the period January, 2007 to June, 2007 till they cleared the dues, the appellants have paid the duty on consignment basis and without utilising the Cenvat credit. On the basis of show cause notice issued, Commissioner has imposed a penalty of Rs. 5 lakh under Rule 25(1)(a) read with Rule 8(3) of Central Excise Rules 2002. 4. Learned advocate submits that during th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ced below :- "Rule 8(3) If the assessee fails to pay the amount of duty by due date, he shall be liable to pay the outstanding amount along with interest at the rate specified by the Central Government vide notification under section 11AB of the Act on the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount. (3A) .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... if any, made after December, 2006, utilising Cenvat credit or without paying the duty on consignment basis should be treated as offending goods. Only clearances after December, 2006 are subjected to consequences and penalties as provided in the Central Excise Rules. This submission of the learned Advocate is not acceptable. It is not in dispute that in respect of goods cleared in December, 2006, t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... action and consequences follow. However, learned Advocate submits that due to financial crisis they defaulted in payment of duty in respective clearances made in December, 2006 but they have followed the restrictions prescribed under Rule 8(3A) by paying duty on consignment basis and without utilising the Cenvat credit and therefore leniency should be shown. 8. Taking the entire facts and c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X