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TMI Blog2013 (9) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... itiated which culminated in confirmation of demand of duty of Rs. 8,24,877/- (Rupees Eight Lakhs, Twenty Four Thousand, Eight Hundred, Seventy Seven only). Further, Penalty of Rs. 5 lakhs (Rupees Five Lakhs only) has been imposed under Rule 25 of Central Excise Rules, 2002. 2. Ld. Consultant on behalf of the appellant relied upon the decision of Hon'ble High Court of Allahabad in the case of CCE, Meerut v. Kitply Industries Ltd. - 2010 (252) E.L.T. 18 (All.), to submit that penalty under Section 11AC was not imposable and maximum penalty that can be imposed is only Rs. 5,000/- (Rupees Five Thousand only) in cases where default has occurred because of bona fide mistaken belief. He also relied upon the decision of the Tribunal in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, have been cleared without payment of duty and the consequences and the penalties as provided in these rules shall follow." 5.1 Rule 8(3A) was introduced w.e.f. 1-4-2005 by Notification No. 14/2005-C.E. (N.T.), dated 31-3-2005 which reads as under : "If the assessee defaults in payment of duty by the date prescribed in sub-rule (2) and the same is discharged beyond a period of 30 days from the said date, then the assessee shall forfeit the facility to pay the duty in monthly instalments under sub-rule (1) for a period of 2 months, starting from the date of communication of the order passed by the Assistant Commissioner of Central Excise or the Dy. Commissioner of Central Excise, as the case may be, in this regard or till such date on w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout payment of duty and the consequences and penalties as provided in these rules shall follow." 5.3 It can be seen that w.e.f. 1-6-2006, Rule 8(3A) provided that in the case of default beyond 30 days, the facilities of monthly payment of duty and utilization of CENVAT Credit during the period of default was withdrawn without any necessity of any specific order in this regard by the Assistant Commissioner or the Dy. Commissioner. It has become the responsibility of the assessee to pay duty consignment-wise from account current and clear the goods. In the event of failure, the goods were to be deemed to have been cleared without payment of duty and the consequences and penalties as provided in the Central Excise Rules were to follow. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view has been taken that penalty under Rule 25 is imposable in contravention of provision of Rule 8(3A) of Rules and the decisions are as under : (i) Siddheswari Industries v. CCE, Ahmedabad - 2010 (259) E.L.T. 144 (Tri.-Ahmd.) (ii) Parekh Bright Bars (P) Ltd. v. CCE, Belapur - 2010 (249) E.L.T. 298 (Tri.-Mum.) (iii) Krishna Chemicals v. CCE, Ahmedabad - 2009 (244) E.L.T. 580 (Tri.-Ahmd.) (iv) Sam Turbo Industries Ltd. v. CCE, Salem - 2006 (200) E.L.T. 87 (Tri.-Chennai) (v) Sai Packaging Industries v. CCE, Chennai - 2010 (253) E.L.T. 107 (Tri.-Chennai) (vi) A.R. Metallurgicals (P) Ltd. v. CCE, Chennai - 2011 (263) E.L.T. 411 (Tri.-Chennai) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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