Penalty under Rule 96ZQ(5) remanded pending constitutional validity ruling on the rule's vires challenge.

Penalty under Rule 96ZQ(5) for delayed payment of duty was not decided on merits because the rule's validity was still under challenge before the Gujarat High Court, with the Supreme Court having remitted the vires issue for decision. In view of that pending constitutional question and earlier remands in similar matters, the Tribunal sent the dispute back to the original adjudicating authority for fresh decision after the High Court proceedings. The reduction or sustenance of the penalty was therefore left open for reconsideration.

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Issues: Whether the penalty under Rule 96ZQ(5) for delayed payment of duty was liable to be sustained at 100% or could be reduced.

Analysis: The Tribunal noted that the validity of Rule 96ZQ had been questioned before the High Court and that the Supreme Court had remitted the issue of vires for decision. As the High Court's decision on the validity issue was not available, and similar matters had earlier been remanded for fresh decision after the outcome of that proceeding, the Tribunal followed the same course.

Conclusion: The matter was remanded to the original adjudicating authority for fresh decision after the outcome of the Gujarat High Court proceedings; the Revenue's appeal was allowed to that extent.

Final Conclusion: The reduction of penalty was not finally affirmed or set aside on merits, and the dispute was sent back for reconsideration after the related constitutional validity issue was decided.

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