TMI Blog2011 (4) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 11-AC would depend upon the existence or otherwise of the conditions expressly stated in the section, but once the section is applicable in a case, the Authority concerned would have no discretion- in quantifying the amount and penalty must be imposed equal to the duty determined under sub-section (2) of Section 11A. Here is a case where Rule 96-ZQ is directly applicable and, therefore, the three-Judges Bench squarely covers this case - Appeals are allowed - 4453-4454 of 2003 - - - Dated:- 20-4-2011 - Dr. Mukundakam Sharma and Anil R. Dave, JJ. REPRESENTED BY : S/Shri V. Shekhar, Sr. Advocate, B. Sumita Rao, T.M. Singh, B.K. Prasad, Vinamra, Mrs. Anil Katiyar, Ms. Anindita Popli and Ms. Priya Bhatnagar, Advocates, for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty payable for the period from 16th December, 1998 to 31st December, 1998, shall be deposited on or before the 31st Day of December, 1998. (5) If an independent processor fails to pay the amount of duty or any part thereof by the date specified in sub-rule (3), he shall be liable to, - (i) pay the outstanding amount of duty along with interest at the rate of twenty-four per cent per annum calculated for the outstanding period on the outstanding amount; and (ii) a penalty equal to an amount of duty outstanding from him at the end of such month or rupees five thousand, whichever is greater. 4. When we read sub-rule (5) of the said Rule, it gives a clear indication that if there is any failure to pay the amount of duty by the date spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for any discretion. In paragraph 136 of the Union Budget, reference has been made to the provision stating that the levy of penalty is a mandatory penalty and that in the Notes on Clauses also the similar indication has been given. That being the position, this Court finally held that the plea that Rules 96-ZQ and 96-ZO have a concept of discretion inbuilt cannot be sustained. 6. In the present case also, we are directly concerned with the provisions of Rule 96-ZQ. So far. Section 11-AC of the Act is concerned, the scope of the said Section was considered by this Court in Union of India v. Rajasthan Spinning and Weaving Mills - (2009) 13 SCC 448 = 2009 (238) E.L.T. 3 (S.C.). That decision was rendered in the context of the said provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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