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TMI Blog2019 (8) TMI 1705X X X X Extracts X X X X X X X X Extracts X X X X ..... production or manufacture of excisable goods. The Central Excise statute mandates that on clearance of the excisable goods from the factory, the assessee was required to discharge the duty liability within the period prescribed under the statute. In this case, admittedly a part of duty liability was discharged by the appellant at the time of clearance of the goods and the remaining amount was paid after finalisation of the CAS-4 certificate. Penalty u/r 25 of CER, 2002 - HELD THAT:- The said provisions cannot be invoked against the appellant, in the absence of elements of fraud, collision, wilful misstatement, etc., with intent to evade payment of duty. The impugned order to the extent it confirmed the interest demand on the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew that the reasoning of this Court in the order referring the cases to us (to this Bench) that for the purpose of Section 11AB, the expression ought to have been paid would mean the time when the price was agreed upon by the seller and the buyer does not square with our understanding of the clear words used in Section llAB and as the rules proclaim otherwise and it provides for the duty to be paid for every removal of goods on or before the 6 th day of the succeeding month. Interpreting the words in the manner contemplated by the Bench which referred the matter would result in doing violence to the provisions of the Act and the Rules which we have interpreted. We have already noted that when an assessee in similar circumstances resorts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ually the interest. We would concur with the views expressed in SKF case(supra) and International Auto (supra). We find no merit in the appeals. The appeals will stand dismissed. 3. In view of the settled position of law enunciated by the Hon ble Apex Court (referred supra), the appellant is liable to pay interest on the differential amount of duty paid by it subsequently. Since the issue has already been decided by the Hon ble Apex Court, with the consent of both sides, the appeal is taken up for hearing today. 4. It is an admitted fact on record that during initial clearance of excisable goods to the sister unit, the appellant had paid lesser amount of central excise duty due to non-preparation of CAS-4 statement and finalisation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de imposition of penalty, holding as under:- 6 . Rule 25 of the Central Excise Rules, 2002, opens with the words subject to the provisions of Section 11AC of the Act . Section 11AC of the Act enjoins levy of penalty for short-levy or non-levy of duty in certain cases and provides that where any duty of excise has not been levied or paid or has been short levied or short-paid or erroneously refunded by reasons of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of the Act or of the rules made thereunder with intent to evade payment of duty, the person who is liable to pay duty as determined under sub-section (2) of Section 11AC of the Act shall also be liable to pay a pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontravention of the nature referred to in clauses (a) to (d) therein. Rule 25 opens with the words, subject to the provisions of Section 11AC of the Act . Thus, for the purpose of invoking the said Rule, the requirements of Section 11AC of the Act are required to be satisfied, namely that the default should be occasioned by reason of fraud, collusion or any wilful misstatement or suppression of facts, or the contravention of any of the provisions of the Act or Rules should be with the intent to evade payment of duty. Unless, the said basic ingredients are satisfied, the question of invoking either Section 11AC of the Act or Rule 25 of the Rules would not arise. In the circumstances, in the absence of any such finding having been recorded b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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