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TMI Blog2013 (9) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... mentwise or is paid by utilising Cenvat credit in respect of certain goods cleared, such clearances would be deemed to have been made without payment of duty and all the consequences for the same as prescribed in the Central Excise Rules, would follow. In the instant case, even during forfeiture period, the duty had not been paid through PLA and had been paid through Cenvat credit, the appellant have been correctly directed to pay the same through PLA. Once the duty is paid through PLA, they would be entitled for re-credit of Cenvat credit earlier utilized - Goods were cleared on payment of duty through Cenvat credit account, the same would be deemed to have been cleared without payment of duty and, hence, the provisions of Rule 25 would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o for imposition of penalty on them on this count under Rule 25 of the Central Excise Rules, 2002 as in terms of the provisions of Rule 8 (3A) when during the forfeiture period, the duty is not paid consignmentwise or is not paid through PLA, the goods are deemed to have been cleared without payment of duty and all the consequence of the same would follow. The show cause notice was adjudicated by the Assistant Commissioner vide order-in-original dated 21/5/09 and by which besides directing the appellant to pay an amount of Rs. 3,33,394/- through PLA, the Assistant Commissioner also imposed penalty of Rs. 1,00,000/- on the appellant under Rule 25. Since, the show cause notice had also alleged that the appellant have not filed the ER-1 return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the case of Lloyds Steel Industries Ltd. vs. Union of India (supra) cited by the learned Counsel of the appellant is not applicable as the Honble Bombay High Court is with regard to the provisions of Rule 173G of the Central Excise Rules, 1944 and not with regard to the provisions of Rule 8 (3A) of the Central Excise Rules, 2002, that the provisions of Rule 8 (3A) are clear that once the period of delay in discharge of the monthly duty liability exceeds 30 days from the due date, the assessee looses the facility to pay duty on monthly basis and also the facility to utilise the Cenvat credit for payment of duty and he is required to pay duty on consignment wise and through PLA and that the Rule 8 (3A) also specifically provides if d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, would follow. Since, in this case admittedly even during forfeiture period, the duty had not been paid through PLA and had been paid through Cenvat credit, the appellant have been correctly directed to pay the same through PLA. Once the duty is paid through PLA, they would be entitled for re-credit of Cenvat credit earlier utilised. Similarly, since during the forfeiture period, the goods were cleared on payment of duty through Cenvat credit account, the same would be deemed to have been cleared without payment of duty and, hence, the provisions of Rule 25 would be attracted. Accordingly, the penalty under Rule 25 has been correctly imposed. 7. As regards penalty of Rs. 5,000/- under Rule 25 for delay in filing of the ER-1 return I a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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