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2013 (1) TMI 303 - AT - Central ExciseCompounded Levy Scheme of Rules 96ZQ - Duty liability based on their annual production capacity - Appellant are independent processors of man-made fabrics – Duty determined the production capacity length of galleries – Short payment of duty - There was delay of 15 days, 11 days and 9 days in discharge of monthly duty liability by due date for the months April, 1999, May, 1999 and June, 1999 - Rule 96ZQ(5)(ii) provided for imposition of penalty for failure to discharge duty liability by due date Held that:- As decided in case of BANSAL ALLOYS & METALS PVT. LTD. (2010 (11) TMI 83 - PUNJAB & HARYANA HIGH COURT) that rule providing for penalty equal to the monthly duty liability for delay in discharge of monthly duty liability by due date has been held to be ultra vires There is no mandatory penalty equal to the outstanding duty liability at the end of the month even for smallest delay in discharge of duty liability by the due date; some penalty commensurate with gravity of the contravention can be imposed by the adjudicating authority. Penalty on the appellant is reduced to ₹ 5 lakhs. Partly allowed in favour of assessee
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