CCE Vs. FREEMAN MEASURE PVT. LTD.

JUDGEMENT

(1.) THE facts of this case, in brief, are that the Respondent defaulted in payment of duty in monthly installments for the months of July 2005, August 2005, January 2006, February 2006 and March 2006 and in respect of each of these periods, there was delay of more than 30 days from the due date in discharging the full duty liability. As per the provisions of Sub -rule 3A of Rule 8 of Central Excise Rules, as it existed during the period of dispute, five show cause notices were issued to the Respondent asking them to show cause as to why the facility to pay duty in monthly instalments should not be withdrawn for period of two months or till the date of payment of duty alongwith interest, whichever is later. All these five show cause notices were adjudicated by the Assistant Commissioner by a common order -in -original No. 59 -63/AC/LDH -I/06 dated 22/09/06 by which he forfeited the facility of duty payment in monthly instalments for a period of 10 months from the date of communication of the order i.e. two months for each instance of default in discharge of monthly duty liability even during the grace period of 30 days from the due date, as prescribed under Sub -rule 3A. The Commissioner (Appeals) reduced the forfeiture period two months on the ground that as per the provisions of Rule 8(3A), the period for which an assessee can be denied the facility of payment of duty in monthly instalments is two months or till the payment of all the dues alongwith interest, whichever is later and since in the present case the Respondent already paid all the dues alongwith interest, though after the period of 30 days from the due date, the Respondent shall forfeit the facility to pay the duty in monthly instalments only for two months. He also relied upon the Tribunal's judgment in the case of Calcom Vision Ltd. v. CCE, Meerut - I reported in and also Commissioner (Appeal)'s order in the case of In Re: Arun Smelters Ltd. reported in, 2003 (153) E.L.T. 475 (Commr. Appl.). Revenue has filed appeal against this order of Commissioner (Appeal) praying for restoring the forfeiture period to 10 months.

(2.) HEARD both the sides.