Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench at Ahmedabad REGIONAL BENCH-COURT NO. 2 EXCISE Appeal No. 742 of 2012- DB (Arising out of OIA-719/2012/COMMR-A-/RBT/RAJ dated 07/08/2012 passed by the Commissioner (Appeals) of Central Excise, Customs-Rajkot)

Ruchi Power & Steel Industries Ltd ……..Appellant Survey No. 332, Phase-II, GIDC Industrial Estate, Village: Mithi Rohar, Taluka: Gandhidham, Kutch, Gujarat- 370201 VERSUS Commissioner, Central Excise &

Customs– Rajkot ……Respondent Central Excise Bhavan, Race Course Ring Road, Rajkot, Gujarat-36001 APPEARANCE:

Shri Dhaval K Shah, Advocate for the Appellant Shri P Ganesan, 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. 10078/2026 DATE OF HEARING: 13.10.2025 DATE OF DECISION: 12.02.2026 SATENDRA VIKRAM SINGH The appellant M/s Ruchi Power & Steel Industries Ltd., Gandhidham (Kuchchh) are engaged in the manufacture of Sponge Iron, MS Billets, SS Billets, TMT Bars, MS Roll, MS Channel, MS Angles, MS Flat, SS Flat etc. falling under Chapter 72 of the Central Excise Tariff Act, 1985. They are availing Area Based exemption under Notification 39/2001-CE dated 31.07.2001.

1.1 On verification of their records, it was found by the Audit officers that the appellant had paid Central Excise duty for the month of December, 2008 and January, 2009 on 30.03.2009 and 27.04.2009 respectively which is beyond the time limit prescribed under Rule 8 of the Central Excise Rules, 2002. Therefore, as per Rule 8(3A) of the Central Excise Rules, 2002, the appellant was required to pay excise duty for each consignment at time of removal without utilizing the Cenvat credit till the appellant pays outstanding amount including interest thereon. In the event of failure, it shall be deemed that such goods have been cleared without payment of duty and consequences shall follow.

1.2 The department issued a show cause notice dated 17.02.2011 asking them to pay Central Excise of Rs. 26,74,513/- under proviso to Section 11A of the Central Excise Act, 1944 alongwith interest under Section 11AB and penalty under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944. The said show cause notice was adjudicated by the Additional Commissioner vide order dated 28.01.2012 who confirmed the above duty under Section 11A along with interest under Section 11AB and imposed penalty equal to duty amount under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the said Act. Aggrieved with the above order, the appellant filed appeal before the Commissioner (Appeals) who vide impugned order dated 07.08.2012 rejected their appeal and upheld the order of the lower authority. Hence, the appeal before this Tribunal.

2. In their appeal, they took the following grounds:-

• Both the lower authorities have confirmed demand of Central Excise duty without considering the fact that the appellant has been very regular and meticulous in maintaining all the records and documents and always complied with the provision of law. Because of their adverse financial position and lower sales, they could not pay duty in time. Their accounting staff had left the job and the new person lacked sufficient knowledge. As a result, duty for December 2008 and January 2009 could not be paid in time. Otherwise, they have been very regular in payment of duty.

• They had paid the amount of duty later on when their financial condition revived alongwith interest and therefore, there is no loss to the Government. They rely on the decision in case of Sibar Auto Parts Ltd Vs CCE, Tirupathi reported in 2008 (227) ELT 255 (Tri.-Bang.).

• They have paid duty by utilizing Cenvat credit and therefore, no duty can be demanded from them for payment through PLA only. The Larger Bench of the Tribunal in the case of M/s Noble Drugs Ltd Vs CCE, Nasik reported in 2007 ELT (215) 500 (CESTAT-Mum-LB