9911796707
TMI Blog2017 (12) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... ial) Shri G.R. Singh, AR -for the appellant Shri Somesh Arora Mehak Gupta, Advocate -for the respondent ORDER Per Anil Choudhary : The issue in this appeal by the revenue is whether the Commissioner (Appeals) is justified indeleting the penalty imposed under rule 15 of CCR 2004. 2. The brief facts are that:- (a) During the scrutiny of Appellants ER-1 returns it was observed that the payment of excise duty was not in the terms of Rule 8 of Central Excise Rules, 2002 and the payments were made after due date along with interest. The Appellant during the month of Feb.2008, June 2008, August 2008, October 2008 and November 2008 had made the payment through Personal Leger Account as well as Cenvat Account from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside the penalty imposed by observing as follows: Now coming to the question of Mandatory Penalty equal to the amount of Central Excise Duty involved it is a settled law that same can be imposed only when there is suppression of facts with intention to evade payment of duty. However in the instant case when the show cause Notice itself says that the wrong doings of the appellants were noticed from the scrutiny of ER-1 returns submitted by the Appellant it leaves no ground for the department to made the charge of suppression of fact with intention to evade payment of duty on the part of Appellant, because if it was so, the figures would have not reflected in monthly ER-1 returns which no doubt would also be available in their books o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for Cenvat credit on the amount of duty paid through PLA. However, the penalty imposed was reduced to ₹ 35,000/ and 25,000/- on the company. Accordingly, it is prayed by revenue that the penalty will be restored. 5. Having considered rival contentions I find that penalty is normally imposed to correct a delinquent assessee. It is not compensatory in nature, like interest. It is settled law that penalty is imposed only in case of deliberate defiance of law, like suppression of facts with intention to evade payment of duty. In the present case, it is admitted fact that the appellant had filed ER-1 returns with the Department regularly and had disclosed their affairs, including the tax payable/paid. I further find that the adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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