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TMI Blog2006 (6) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... ularly within the stipulated time. However, in so far as the payment of duty for the month of September was concerned, it was paid on 5th of November, 2005 instead of paying it before 5th of November, 2005 and according to the petitioner, this mistake was committed unintentionally by the company staff as they did not notice an amendment which was brought in Central Excise Rules, 2002 wherein sub-rule (3A) was added to Rule 8 with effect from 1st April, 2005. By this amendment, forfeiture of the facility was prescribed if the payment of the duty by the due date was not discharged within 30 days. Earlier to this amendment, instead of 30 days it used to be one month and the petitioner-company could not realize the difference between one month and 30 days, therefore there was a delay of one day in remitting the amount. Thereafter the petitioner-company paid duty regularly within time. On 2-2-2006 the 1st respondent passed an order inter alia forfeiting the facility given to the petitioner-company to pay the duty in monthly instalments under sub-rule (1) of Rule 8 of Central Excise Rules, 2002 for a period of two months from the date of communication of the said order which was communic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that where an assessee in the State of Gujarat is availing of the exemption under a notification based on the value of clearances in a financial year, the duty on goods cleared during the month of February, 2002 shall be paid by the 31st March, 2002. Explanation. - For removal of doubts, it is hereby clarified that the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date. 2. The duty of excise shall be deemed to have been paid for the purposes of these rules on the excisable goods removed in the manner provided under sub-rule (1) and the credit of such duty allowed, as provided by or under any rule. 3. If the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with an interest at the rate of two per cent per month or rupees one thousand per day, whichever is higher, for the period starting with the first day after due date till the date of actual payment of the outstanding amount : Provided that the total amount of interest payable in terms of this sub-rule shall not exceed the amount of duty which has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 17/2005- Central Excise (N.T.) dated the 31st March, 2005 In exercise of the powers conferred by Section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government, hereby makes the following rules further to amend the Central Excise Rules, 2002, namely :- 1. (1) These rules may be called the Central Excise (Second Amendment) Rules, 2005. (2) They shall come into force on and from 1st April, 2005. 2. In the Central Excise Rules, 2002 (hereinafter referred to as the said Rules), in rule 8,- A. for sub-rule (3), and the proviso and the illustrations thereto, the following shall be substituted namely :- "(3) If the assessee fails to pay the amount of duty by due date, he shall be liable to pay the outstanding amount along with interest at the rate specified by the Central Government vide notification under Section 11AB of the Act on the outstanding amount, for the period starting with the first day alter due date till the date of actual payment of the outstanding amount." (B) after sub-rule (3) so substituted, the following sub-rule shall be inserted, namely :- "(3A) If the assessee defaults in payment of duty by the date prescribed in sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout reference to the relevant facts and circumstances of the case." 6. Similarly in Karnataka SRTC v. S.G. Kotturappa the Supreme Court held : "The question as to what extent, principles of natural justice are required to be complied with would depend upon the fact situation obtaining in each case. The principles of natural justice cannot be applied in vacuum. They cannot be put in any straitjacket formula. The principles of natural justice are furthermore not required to be complied with when it will lead to an empty formality. What is needed for the employer in a case of termination of services of an employee is to apply the objective criteria for arriving at the subjective satisfaction. If the criteria required for arriving at an objective satisfaction stand fulfilled, the principles of natural justice may not have to be complied with, in view of the fact that the same stood complied with before imposing punishments upon the respondents on each occasion and, thus, the respondents, therefore could not have improved their stand even if a further opportunity was given." 7. Since the petitioner has admitted that he is in default and the rule provides for forfeiting the facili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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