THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.17892 of 2011 July , 2011 Between: ... Petitioner And And another …Respondents THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.17892 of 2011 ORDER: (Per Hon’ble Sri Justice V.,V.S.Rao) The petitioner’s company is engaged in the manufacture of LPG cylinders falling under tariff item 7311 0010 of the Schedule 2 to the Central Excise Tariff Act, 1985. The second respondent issued a notice dated 13/14.10.2010 calling upon the petitioner to show cause as to why the goods cleared from November 2009 to August 2010 should not be treated as clearances made without payment of duty as per the provisions of Rule 8(3)(a)(ii) of the Central Excise Rules, 2002 (the Rules) and as to why the defaulted duty amount, interest and penalty should not be recovered from the petitioner in terms of Section 11(a)(i) and 11(a)(ii) of the Central Excise Act, 1944 read with other applicable provisions of the Rules. The petitioner submitted reply dated 08.11.2010 to the show cause notice. On considering the same, the second respondent vide Order-In-Original (OIO) No.13/2011-(CE) Commissioner, dated 28.1.2011 held that the goods cleared during November, 2009 to August, 2010 by not paying the duty consignment- wise at the time of clearance in account current as clearances in contravention of Rule 8(3)(a) of the Rules, affirmed the demand amount of Rs.1,36,64,126/- levied interest at the applicable rate on the amount of defaulted duty mentioned herein besides levying penalty of Rs.10,00,000/- on the petitioner and interest of Rs.1,825/- for delayed payment of duties pertaining to relevant period. The second respondent also imposed penalty of Rs.2,00,000/- on the Managing Director of the petitioner. Being aggrieved by the OIO of the second respondent, the petitioner filed an appeal along with an application for stay before the Central Excise, Customs & Service Tax Appellate Tribunal (CESTAT) dated 20.4.2011. The appeal as well as the application seeking stay are pending before the STAT. ________________ (V.V.S. RAO, J) ______________________________ (RAMESH RANGANATHAN, J) July 19, 2011 YS