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2013 (1) TMI 248 - AT - Central ExciseCompounded levy scheme - Rule 96 ZO(3) - Appellant manufactures ingots and billets - Failure to discharge duty liability by the due date - Department impose penalty under provision of said rule 96 ZO(3) - Held that:- Following the decision in case of Bansal Alloys & Steel Pvt. Ltd. (2010 (11) TMI 83 - PUNJAB & HARYANA HIGH COURT ), that the impugned Rule 96ZO(3) of the Central Excise Rules to the extent of providing for mandatory minimum penalty without any men rea and without any element of discretion is excessive and unreasonable restriction on fundamental rights is arbitrary. Moreover, exercise of such power by way of subordinate legislation is not permissible when rule making authority for levying penalty is limited to default “with intent to evade duty”. The aforesaid finding by implication means that the adjudicating authority have discretion to impose lower penalty in case of failure of the assessee to discharge the obligation of duty liability by the due date. The excise duty was paid by the appellant though after due date but the payment was made much before issue of SCN. Thus there is no justification for imposing penalty equivalent to duty not paid within due date. Accordingly, taking into account the overall facts of the case, penalty imposed on the appellant is reduced to Rs. 1,00,000/-. Partly allowed in favour of assessee
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