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2013 (1) TMI 442 - AT - Central ExciseShort payment of excise duty – Mandatory minimum penalty - Intention to evade duty - Compounded levy scheme u/s 3A of the Central Excise Act, 1944 - Penalty upon the respondent under Rule 96ZO(3) - Under the scheme the respondent was required to pay a sum of duty amounting to Rs. 5.50 lacs in two equal installments in a month – Held that:- Following the decision in case of BANSAL ALLOYS & METALS PVT. LTD. (2010 (11) TMI 83 - PUNJAB & HARYANA HIGH COURT) that the aforesaid rule to the extent of providing mandatory minimum penalty without any mens rea and without any element of discretion is excessive and unreasonable restriction on fundamental rights and is arbitrary. On the basis of overall facts and circumstances of the case which did not indicate the intention to evade payment of excise duty was justified in reducing the penalty. In favour of assessee
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