1 | P age Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad REGIONAL BENCH- COURT NO. 02 Excise Appeal No. 1004 of 2010 (Arising out of OIO-06&07/DEM/DAMAN/2010 dated 31/03/2010 passed by the Commissioner of Central Excise, Customs and Service Tax-DAMAN)

Remco Paper & Board Industries Limited …..Appellant Plot No. 205-206, GIDC, Vapi, Gujarat VERSUS C.C.E & S.T- Daman …..Respondent

3rd Floor...Adarsh Dham Building, Vapi-Daman Road, Vapi Opp.Vapi Town Police Station, Vapi, Gujarat- 396191 WITH Excise Appeal No. 1281 of 2010 (Arising out of OIO-06&07/DEM/DAMAN/2010 dated 31/03/2010 passed by the Commissioner of Central Excise, Customs and Service Tax-DAMAN)

C.C.E & S.T- Daman …..Appellant

3rd Floor...Adarsh Dham Building, Vapi-Daman Road, Vapi Opp.Vapi Town Police Station, Vapi, Gujarat- 396191 VERSUS Remco Paper & Board Industries Limited …..Respondent Plot No. 205-206, GIDC, Vapi, Gujarat APPEARANCE:

Shri Amber Kumrawat, Advocate for the Appellant Shri A R Kanani, Superintendent (AR) for the Respondent CORAM:

HON'BLE Dr. AJAYA KRISHNA VISHVESHA, MEMBER ( JUDICIAL ) HON'BLE MR. SATENDRA VIKRAM SINGH, MEMBER ( TECHNICAL )

Final Order No. 10086-10087/2026 DATE OF HEARING:14.10.2025 DATE OF DECISION:13.02.2026 SATENDRA VIKRAM SINGH M/s. Remco Paper & Board Industries Limited, Vapi are engaged in manufacture of Paper & Paper Board under Chapter 48 of the Central Excise Tariff Act, 1985. It was observed by the Officers that they have part paid part Central Excise Duty for the month of July 2007 by using Cenvat Credit by the due date but the balance duty which was to be paid through PLA, was not paid even after expiry of more than 30 days from the due date. Same, again happened in September 2007 when only a part of duty was paid from Cenvat Credit by the due date and the rest to be paid from PLA, was delayed by more than 30 days from the due date. The department alleged that during the default period, the party did not pay duty on consignment basis, in cash and therefore, they have violated the provisions of Rule 8 (3A) of the Central Excise Rules, 2002 which was amended Vide Notification No.

30/2006-CE (N.T) dated 01.06.2006. The said Rules provides as under:-

"If the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in sub rule (1), then notwithstanding anything contained in said sub-rule (1) and sub rule (4) of Rule 3 of Cenvat Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removed, without utilizing the Cenvat Credit till the date the assessee pays the outstanding amount including interest thereon, and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow"

1.1. The goods cleared by the party during default period in contravention of the provisions of Rule 8(3A) are presumed to be cleared without payment of duty and consequences as per Rule 25 of the Central Excise Rules, 2002 and Section 11AC of the Central Excise Act, 1944 are attracted in their case. The department therefore, issued two show cause notices dated 05.08.2008 & 07.11.2008 to the appellant proposing recovery of defaulted duty amount in cash, confiscation of the goods cleared during the violation period and imposition of penalty on them. The said two show cause notices were adjudicated by the Commissioner vide inpugned order dated 31.03.2010 wherein, he confirmed the Central Excise Duty demand of Rs. 4,35,889/- in respect of show cause notice F.No. V(Ch48) 3-50/DEM/08-09 dated 05.08.2008 and duty of Rs. 57,01,109/- as per second show cause notice bearing F No. V (Ch48)3-17/DEM/08-09 dated 07.11.2008 along with interest. He also imposed penalty of Rs. 5 Lakhs on the appellant under Rule 25 of the Central Excise Rules 2002. Aggrieved with this order, both the appellant as well as the department filed separate appeals before this Tribunal.

2. I