https://www.taxtmi.com/caselaws?id=100817 Rule 173Q penalty was held inapplicable to a manufacturer under the compounded levy scheme where Rule 173A(2) excluded Chapter VIIA and the duty on the relevant clearances was later paid before notice. The change in effective date had led August 1997 clearances to be treated as duty-free, but that shortfall alone did not justify penal action once the duty liability was subsequently discharged. The principle stated is that, where the scheme excludes Chapter VIIA, penalty cannot be imposed merely because of an effective-date adjustment and delayed payment before issuance of notice. en-us Fri, 16 Nov 2001 00:00:00 +0530 Tue, 07 Feb 2012 12:08:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100817 Rule 173Q penalty was held inapplicable to a manufacturer under the compounded levy scheme where Rule 173A(2) excluded Chapter VIIA and the duty on the relevant clearances was later paid before notice. The change in effective date had led August 1997 clearances to be treated as duty-free, but that shortfall alone did not justify penal action once the duty liability was subsequently discharged. The principle stated is that, where the scheme excludes Chapter VIIA, penalty cannot be imposed merely because of an effective-date adjustment and delayed payment before issuance of notice. Case-Laws Central Excise Fri, 16 Nov 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100817