2014 (3) TMI 7

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..... les and for the alleged default, the penalty was restricted to Rs. 5,000/- in each matter under Rule 27 of the Rules - Following decision of Commissioner of Central Excise and Customs Vs. Saurashtra Cement Ltd. [2010 (9) TMI 422 - GUJARAT HIGH COURT] and Siyaram Packaging Pvt. Ltd. Vs. CCE, Daman [2013 (4) TMI 382 - CESTAT AHMEDABAD] - Decided partly in favour of assessee.
Mr. H.K. Thakur, J. For the Appellant : Shri Sachin Chitnis (Advocate) For the Respondent : Shri J. Nair (A.R.) JUDGEMENT Per : Mr. H.K. Thakur; This appeal has been filed by the appellant against OIO No.13/DEMAND/DAMAN/2007, dt. 31.08.2007 under which a penalty of Rs.5,00,000/- (Rupees Five Lakhs only) was imposed upon the appellant under Rule 25 of the Central E .....

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..... ied upon the case law of Welldone Celloplast Ltd. Vs. CCE, Delhi IV [2013 (287) ELT 141 (Tri. - Del.)] and argued that penalty under Rule 25 was correctly imposed upon the appellant. 4. Heard both sides and perused the case records. It is observed that the issue involved regarding imposition of penalties for default in payments of Central Excise duty under Rule 8 of the Central Excise Rules, 2002 is no more res-integra and has been decided by the jurisdictional High Court in the case of Commissioner of Central Excise and Customs Vs. Saurashtra Cement Ltd. [2010 (260) ELT 71 (Guj.)]. While delivering this judgment Hon'ble High Court has held as follows in para 8, 17 and 18: 8. The revenue has proposed the following substantial question of .....

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..... ients are not present, penalty under Section 11AC cannot be levied. Since Rule 25 can be invoked subject to the provisions of Section 11AC of the Act, as a natural corollary, the ingredients mentioned in Section 11AC are also required to be considered while determining the question of levying of penalty under Rule 25 of the Central Excise Rules. 24. In view of the above discussion and legal position emerging therefrom, we have no hesitation in confirming the orders passed by the Tribunal and dismissing all these Appeals filed by the Revenue, by holding that there was no intention on the part of the respondent assessee to evade any payment of duty. It is only because of stringent financial condition, that the duty could not be paid in time .....

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