KARUR KCP PACKAGING LTD. Vs. CCE

JUDGEMENT

(1.) Heard both sides. In this case, the appellants were required to pay the duty for the month of June'05 and July'05 respectively on 5 July'05 and 5 August'05. However, the appellants paid the duty amount respectively on 05.08.05 and 05.09.05. The department's case is that they come under the provision of Sub -rule 8(3A) of the Central Excise Rules, 1944, since there is a gap of 30 days in between due date of payment of duty and the actual date of payment of duty.

(2.) Shri M.N. Bharati, Ld. Advocate, appearing for the appellants states that the appellants were under the impression that they could pay the duty amount within a month and they have done so but since the respective months of July and August were of 31 days, the payment has been technically made beyond the 30 day having been made on the 31st day. He also submits that in the second incidence, the 30 day was the Government holiday being Sunday; no payment could have been made that day. He also states that the Sub -rule (3A) of Rule 8 at the material time referred to the date prescribed in Sub -rule (2) as has been correctly noted by the lower appellate authority. But it is a fact that no date has been prescribed under Sub -rule (2).

(3.) After hearing both sides, I find that the appellants have paid the duty on the 31st day and in the second instance they had no choice to pay on the 30 day which was a Government holiday. Moreover, I find that the impugned Sub -rule (3A) of Rule 8 makes a reference to Sub -rule (2) at the material time which has already been noted by the lower appellate authority and stated in para -2 of his order. In view of the fact that the Sub -rule (2) does not prescribe a date, the appellants deserve to be given the benefit of doubt. Hence, extending them the benefit of doubt while taking into account the payment that has already been made on the 31st day i.e. during the month, the impugned orders passed by the authorities below is set aside and the appeal is allowed.