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TMI Blog2012 (11) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication are directed against order-in-appeal No.PKS/305/BEL/2010 dated 20/09/2010 passed by the Commissioner of Central Excise (Appeals), Navi Mumbai. 2. The appellant, M/s.Wasp Pumps Pvt. Ltd., had cleared excisable goods during January to December 2005 without payment of duty on time. Duty was paid subsequently; however, interest thereon was not paid. Accordingly, vide order dated 09/11/2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t partly for payment of duties which was forfeited by the order of the original adjudicating authority and the adjudicating authority vide order dated 18/03/2010 confirmed the demand for an amount of Rs.62,157/- paid through the Cenvat Credit account wrongly and directed the appellant to make the payment in cash along with interest thereon. He also imposed a penalty of Rs.2 lakhs under Rule 25 (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. Consultant submits that the penalty imposed far exceeds the duty liability and therefore, the same is bad in law. 4. The Ld. Dy. Commissioner (AR) appearing for the revenue reiterates the findings of the lower authorities. 5. I have carefully considered the rival submissions. As the issue lies in a narrow compass, I take up the appeal itself for consideration and disposal after dispensin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnment at the time of removal, without utilizing the Cenvat Credit till the date the assessee pays the outstanding amount including interest thereof and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow. Therefore, during the subsequent period, when the provisions rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notice nor in the orders passed by the lower authority, is there any finding that the goods are liable to confiscation and consequently without giving a positive finding in this regard, penalty could not have been imposed. Further maximum penalty imposable under the said rule is equal to the duty involved or Rs.2000/- whichever is higher. Therefore, imposition of penalty of Rs.2 lakhs which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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