Compounded levy duty fully paid before refixation cannot support further recovery, interest, or penalty.

Where duty under the compounded levy scheme had already been fully paid before refixation of annual capacity, no further demand could be sustained once the refixed capacity showed a lower liability than the amount already deposited. The legal basis for additional recovery disappeared because no duty remained outstanding at the time of refixation. The note therefore records that further levy, interest, or penalty could not survive in the absence of any unpaid duty.

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Issues: Whether interest and penalty were leviable under the compounded levy scheme when the entire duty had already been paid before refixation of annual capacity of production.

Analysis: The annual capacity of the mill was subsequently refixed, and it was not disputed that before such refixation the assessee had already paid the whole amount of duty. On the refixed capacity, the duty liability worked out to a lesser amount than what had already been deposited. Since no duty remained outstanding when the duty liability was determined on refixation, the basis for further recovery did not survive.

Conclusion: The demand for further relief under the rule was not sustainable and the appeal by the Revenue failed.

Final Conclusion: The impugned order was upheld because the duty liability stood fully discharged before refixation and nothing remained payable.

Ratio Decidendi: Where the duty payable under the compounded levy scheme has already been fully discharged before refixation of annual capacity, no further levy can be sustained in the absence of any outstanding duty.

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