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TMI Blog2016 (12) TMI 1519X X X X Extracts X X X X X X X X Extracts X X X X ..... ade payment of duty as each and every consignment was undisputedly cleared on the invoices issued under Rule 11 of Central Excise Rules, 2002 - Since the appellants have paid the duty even from cenvat account and the department has accepted the said payment for the reason that the said payment of duty, therefore the only lapse at present is that the appellants have not paid the duty on consignment basis but on monthly basis. For this lapse in my considered view, the penalty under Rule 25(1) (a) cannot be imposed. However there is no doubt that the appellants have contravened the provision inasmuch as they have paid duty on monthly basis as against requirement of payment of duty on consignment basis. Therefore they are liable for penaltie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sposed of by reducing the penalties from equal amount of duty to ₹ 1lakh each. Therefore the appellants are before me. 2. Shri J. N. Somaiya, Ld. Counsel for the appellant submits that this is not a case of clandestine removal or evasion of duty. They have paid the duty on the clearances. The only lapse is that the duty was paid on monthly basis and not on consignment basis. He submits that even the payment made on monthly basis has been accepted by the department and the same was appropriated against the demand. In such circumstances, the action of the appellants does not warrant for the invocation of Rule 25 for imposition of penalty as there was no intention of evasion of duty on the part of the appellants. He placed reliance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014 (312) ELT 611 4. I have carefully considered the submissions made by both the sides. As per the fact of the case, it is undisputed that the appellants have discharged the duty on the clearances made during the default period. The only lapse on the part of the appellants was they were supposed to pay duty through PLA on consignment basis. In this fact, it cannot be said that the appellants had any intention to evade payment of duty as each and every consignment was undisputedly cleared on the invoices issued under Rule 11 of Central Excise Rules, 2002. As regard the Hon ble Gujarat High Court judgment in the case of Indsur Global Ltd. (supra) though provision for non-utilization of cenvat credit during default period was held ultra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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