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TMI Blog2011 (6) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... isposed of. Penalty of Rs.5,000/- only for every month of default. - E/2917-20 & 2923/07-SM - - - Dated:- 16-6-2011 - Mr. M. Veeraiyan, J. Present for the Appellant : Shri Biping Garg,Advocate Ms.Sukriti Das, Advocate Present for the Respondent: Shri S.k.Bhaskar, SDR PER: M.VEERAIYAN These five appeals, by the same appellants involve a common issue and arise out of common order-in appeal of the Commissioner (Appeals) No.172-181/CE/MRT/II/07 dated 26.07.07. 2. Heard both sides. 3. The relevant facts of the case, in brief, are that the appellants defaulted in payment of duty partly for six months (in appeal No.E/2920/07, the default relates to 2 months April May, 04 and in other appeals default of one month each ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 27 of Central Excise Rules, 2002. He also submits that there is no scope for demanding interest at the rate of Rs.1,000/- per day for everyday of delay as the said rule has been strictly construed by Hon'ble Rajasthan High Court in the case of Lucid Colloids Limited vs. Union of India reported in 2006 (200) ELT 377. He also relies on the decision of the Tribunal in the case of Kitply Industries Ltd. CCE, Meerut-2009 (243) ELT 2009 and the decision in the case of Shaligram Laminates Pvt.Ltd. vs. CCE, Ahmedabad reported 2009 (244) ELT 570. 5. Learned SDR reiterating the findings and reasoning of the Commissioner (Appeals) submits that the duty due for every month is required to be strictly paid within the prescribed time limit. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after due date till the date of actual payment of the outstanding amount: Provided that the total amount of interest payable in terms of this sub-rule shall not exceed the amount of duty which has been paid by due date: Provided further that till such time the amount of duty outstanding and the interest payable thereon are not paid, it shall be deemed that the goods in question in respect of which the duty and interest are outstanding, have been cleared without payment of duty, and where such duty and interest are not paid within a period of one month from the due date, the consequences and the penalties as provided in these rules shall follow. 6.2 Therefore, penalties are warranted in terms of Central Excise Rules only and not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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