Belated duty payment with interest bars further demand and defeats penalty enhancement for the same default.

Where duty arrears were subsequently paid in full along with interest, no further duty demand survived. The belated payment cured the monetary default, and the earlier decision dropping the duty demand was left undisturbed. On the separate question of penalty, enhancement was not justified because the default in fortnightly payment had been made good by payment of duty and interest. The Department's challenge therefore failed, and the reduced penalty was maintained without increase.

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Issues: (i) whether any further duty demand survived after the duty was paid belatedly along with interest; and (ii) whether the penalty imposed for default in fortnightly payment called for enhancement.

Issue (i): whether any further duty demand survived after the duty was paid belatedly along with interest.

Analysis: The duty liability had been discharged in full, though beyond time, and interest had also been paid. In these circumstances, the earlier finding that no further demand of duty was justified did not warrant interference.

Conclusion: No further duty demand survived.

Issue (ii): whether the penalty imposed for default in fortnightly payment called for enhancement.

Analysis: The default was subsequently made good by payment of duty together with interest. On these facts, enhancement of the penalty was not justified.

Conclusion: Enhancement of penalty was unwarranted.

Final Conclusion: The Department's challenge failed in full, and the order dropping the duty demand while maintaining the reduced penalty was left undisturbed.

Ratio Decidendi: Where the duty arrears are fully paid along with interest, no further duty demand survives and penalty enhancement for the same default is not warranted.

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