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2010 (9) TMI 408 - CESTAT, NEW DELHIDelay in payment of duty – Compounded levy scheme – merely because there was delay in clearing the cheques on account of completion of banking procedure, that would not affect date of payment of duty by an assessee if assessee is able to show that the cheques were presented to the bankers, duly empowered to collect the duty, within the time stipulated under the statute - delay in clearing such cheques on account of banking procedure would not render the assessee to be liable either for payment of interest or penalty Penalty – as far as period prior to January, 2000 is concerned, there was no delay in tendering the duty. However, from January to March, 2000 there was delay in tendering the duty. Show cause notice was issued on 16th August, 2004. Obviously, it was within the period of five years. Being so, the decision of the Punjab & Haryana High Court in the matter of Bhawani Castings (P) Ltd. (2010 -TMI - 77052 - PUNJAB & HARYANA HIGH COURT) cannot be of any help to the respondents to contend that the Department was not entitled to initiate action for imposition of penalty. In relation to the period from January to March, 2000 there was default in payment of duty amounting to Rs. 15 lacs. Obviously, therefore, the penalty imposable was only to the tune of Rs. 15 lacs and in that regard the authorities below had no discretion.
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