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:: OFFICE OF THE SUPERINTENDENT OF CENTRAL EXCISE::

AR-III, ROOM NO.216 & 219, 2ND FLOOR, CENTRAL EXCISE BHAVAN,
RACE COURSE RING ROAD, RAJKOT
Phone No.0281-2454210

EPBX: 353/355

File No.C.EX/AR-III/SCN/ Dealer Return (Ravine)/2011-12

ORDER - IN- ORIGINAL


NO.08/SUPDT-III/2011
Passed by

Date of order
Date of issue

27/09/2011
27/09/2011

In the matter of

Shri.S.N.Ansari,
Superintendent,
Central Excise AR-III,
Rajkot.
M/s. M/s.Ravine Hi-Tech Lubricants,
Mahadev Vadi Main Road,
Opp: Delight Icecream,
Umakant Pandit Udhyognagar,
Rajkot

Show Cause Notice No. &


date

Issued by the Superintendent of Central Excise, AR-III,


Rajkot.

1.

This copy of order is granted free of charges to the person to whom it is issued.

2.

Any person deeming himself aggrieved by this order may appeal against this order
to the Commissioner (Appeals), Customs & Central Excise, Rajkot.

3.

The Appeal should be filed in Form EA-1 and it shall be signed by the person as
specified in Rule 3(2) of the Central Excise (Appeals) Rules, 2001.

4.

The Appeal should be filed within sixty days from the date of receipt of this order
as provided under Section 35(1) of the Central Excise Act, 1944.

5.

The Appeal should be accompanied by ;


( c)

6.

(i)
(ii)

copy of this order which bear court fee stamp as prescribed under schedule
1 of Article 6 of the Court Fee Stamp Act, 1870, as under;
If the amount or value of subject matter is Rs.50 or less, then Rs.0.25;
If such amount exceed Rs.50, then Rs.0.50.

(d)

A copy of the appeal should also bear a court fee stamp of Rs.2.50.

Proof of payment of duty, penalty etc. should also be attached to the original form
of appeal.

Brief facts of the case

M/s.Ravine Hi-Tech Lubricants, Mahadev Vadi Main Road, Opp: Delight Icecream,
Umakant Pandit Udhyognagar, Rajkot (hereinafter referred to as the assessee) is having
Central Excise Registration No.AHTPK0183EED001 as Dealer of excisable goods and are
required to file Quarterly return viz. Form-2 under Rule 7 of the Cenvat Credit Rules, 2002.
Also, as per sub-rule 8 of Rule 9 of the Cenvat Credit Rules, 2004 and as per para 2.4 of PartII of Chapter 6 of the CBECs Excise Manual, issued under Rule 31 of the Central Excise
Rules, 2004 (hereinafter referred to as the said Rules, a first stage or second stage dealer
have to submit to the Superintendent of Central Excise, a quarterly return within 15 days from
the close of each quarter in the format prescribed vide Notification No.73/2003-CE (NT)
dated 15.09.2003.

The assessee did not file quarterly return in Form-2 for the quarter April, 2011 to June,
within the stipulated period as envisaged as above, but the same were filed manually on
16.08.2011 delayed by 31 days..

Thus, by not filing the aforesaid returns during the prescribed time limit, the assessee
have rendered themselves liable to penal action under Rule 15A of Cenvat Credit Rules, 2004
read with Rule 27 of the Central Excise Rules, 2002.

Therefore, a SCN bearing No.C.EX./AR-III/SCN/Dealer return (Ravine)/2011 dated


18.08.2011 was issued to the assessee asking them to explain as to why:

Penalty under Rule 15A of Cenvat Credit Rules, 2004 read with Rule 27 of the Central
Excise Rules, 2002 should not be imposed upon them, for not filing of monthly return
for the Quarter April, 2011 to June, 2011 within the stipulated period.

Defence:
The assessee filed defence reply vide letter dated 19.09.2011 to the present SCN dated
18.08.2011, interalia, submitted that they have tried to file the said return even within time
i.e.08.07.2011, 12.07.2011 and 20.07.2011, but it was rejected due to technical error and
produced the photocopy of online status. They further submitted that while filing the details of
Documents based on while the credit is passed on, it requires mentioning the registration
number of supplier being mandatory field. But here, they are the importer and they could not
have registration no. of importer. Despite that they tried to put Registration No. of own excise
registration no., but of no avail as it was not accepted due to which they could not upload the
file. Owing to this technical system error in ACES, dealers returns were rejected the same
problem is still persisting. Hence, they filed return manually on 16.08.2011. They further
requested not to take penal action in the matter, but take lenient view in the matter on account

of such technical errors being no fault on assessees part. They also sought personal hearing in
the matter.
Accordingly, personal hearing in the matter was fixed on 23.09.2011.
Shri.Chetan B.Manek, an authorized person of the said unit, appeared for personal
hearing in the matter. During the course of hearing, he reiterated the contents of written
submission on 19.09.2011 and in addition of above, he further submitted an additional
submission contending upon proposal for imposition of penalty on account of late filing of
dealers return which occurred due to technical error in ACES and accordingly taken recourse of Tribunal Judgment as in 2010(250)ELT 528 (Tri-Bang) in the case of M/s.Resil
Chemicals Pvt. Ltd. v/s.Commissioner of C.Excise, Bangalore and in 2009 (247) ELT 957
(Commr.Appl) in respect of Appeal by M/s.Indian Oxalate Ltd. Thus, he requested to drop the
penal proceedings initiated under aforesaid SCN looking to above submissions.

Findings:
I have gone through the facts of the case, written submission as well as additional
submissions made during personal hearing held in the matter on 23.09.2011. I find that the
issue involved in the Show Cause Notice is late filing of Quarterly returns for the period from
April, 2011 to June, 2011, which was delayed by 31 days. It is established beyond doubt that
the assessee has filed the Quarterly return manually for the quarter ending on June, 2011 late.
The due date for filing the return for the Quarter- April, 2010 to June, 2010 was on or before
15.07.2010 and the assessee ought to have had filed the same within the stipulated time
period. Instead they filed dealers return manually on 16.08.2010 i.e. 31 days late. Thus, the
charges leveled in the above mentioned Show Cause Notice stand established.

I find that the said assessee has submitted that they have tried to file quarterly return
well within time period i.e. on 08.07.2011, 12.07.2011 & also on 20.07.2011, but the same
was rejected due to technical error in ACES and thus furnished the photocopy of online status.
Further, the said assessee has submitted that while filing the details of Documents based on
while the credit is passed on, it requires mentioning Registration number of supplier which is
mandatory field. I find that since the said assessee have imported the goods and in absence of
registration number of importer, they were unable to upload the file. Owing to such technical
error in ACES, return was rejected if contained the details of imported material. Hence, the
said assessee has filed the Dealers quarterly return for the quarter ending on 30.06.2011
manually on 16.08.2011. I find that the contention made is of regarding technical fault in the
ACES system which occurs while filing the details of importer when there is case of self
import. I do agree that due to technical error in the ACES, it could not rectify. From the
above, I also find that the assessee had even tried to file the return on aforesaid dates, but
could not succeed due to aforesaid reasons. Here, one thing is crystal clear that the return
should be filed within the stipulated period i.e. within 15 days from the close of each quarter
as per provisions mentioned supra. It would be pertinent to mention here that the Range office

comes to know the status of rejection/non-filing in time of said Dealers quarterly return for
the quarter ending on 30.06.2011 only when the assessee submits the said return manually on
16.08.2011 in absence of module in ACES showing the status of non-filing/stop filer of
returns. Had the assessee not filed the said return manually, the range office would not have
come to know the status of return as the ACES will not depict the status of Dealers return or
it can be said non-filing of return by the said assessee.

I find that the above contention of the said assessee is not very acceptable as they
ought to have had filed the said returns manually within the stipulated period even if there
was any technical fault in the system, but they failed to do so in time. I find that it took the
said assessee 31 days for filing the Dealers quarterly return even manually for the quarter
ending on 30.06.2011. This attitude indicates disregard to the Government procedures/rules
and the law and this inattentive attitude on the part of the assessee cannot be condoned on any
grounds.

I find that the said assessee has substantiated their views by placing reliance on the
judgement pronounced in the case of M/s.Resil Chemicals Pvt. Ltd. V/s.Commr. of C.Excise,
Bangalore as reported in 2010(250)ELT 528 (Tri-Bang). In the said case, I find that the facts
and circumstances of the case are different; hence it cannot be applied here as it is about late
submission of re-warehousing certificate. Similarly, the said assessee has also applied the
judgment given by the Commr.(A), Pune OIA dated 29.04.2009 as reported in 2009(247)ELT
957 (Commr.Appl) in case of M/s.Indian Oxalate Ltd. I also find that the facts and
circumstances of the case are entirely different; it cannot be applied in the present case as the
matter was about non-payment of duty through E-payment in Govt. account.

I, therefore, find that the said assessee has contravened Rule 9(8) of the Cenvat Credit
Rules, 2004 and that penalty under Rule 15A of the Cenvat Credit Rules, 2004 read with Rule
27 of the said Rules is rightly imposable on them failure to timely file of Dealers quarterly
return for the quarter ending on 30.06.2011.

However, from the records of the case, I find that the assessee had made out full
efforts, but they could not succeed due to technical error in ACES. Hence, I refrain from
imposing full penalty on the said assessee.

Accordingly, I pass the following order:

-: O R D E R :-

I impose penalty of Rs.1000/- (Rupees one thousand only) on M/s.Ravine Hi-Tech


Lubricants, Mahadev Vadi Main Road, Opp: Delight Icecream, Umakant Pandit
Udhyognagar, Rajkot, under Rule 15A of Cenvat Credit Rules, 2004 read with Rule 27 of the

Central Excise Rules, 2002, for late filing of quarterly return for the quarter ending on 30th
June, 2011.

(S.N.Ansari)
Superintendent,
Central Excise AR-III,
Rajkot.

File No: C.EX/AR-III/SCN/ Quarterly (Ravine)/2011-12


Dated: 27.09.2011
By Regd. Post A.D/Hand Delivery.
To,
M/s.Ravine Hi-Tech Lubricants,
Mahadev Vadi Main Road,
Opp: Delight Icecream,
Umakant Pandit Udhyognagar,
Rajkot.

Copy submitted to:


1) The Assistant Commissioner (RRA), Central Excise H.Q., Rajkot.
2) The Assistant Commissioner, Central Excise Division-I, Rajkot.
3) Guard File.
4) Office copy.

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