https://www.taxtmi.com/caselaws?id=113960 Under a capacity-based excise scheme, penalty under Rule 96ZQ was found unsustainable where the duty liability was quantified only later and the assessee had already paid the short-paid duty before that determination. The applicable mechanism required debit and payment after the competent authority fixed annual capacity and the corresponding duty. Because the revised duty had been discharged before final determination, and the department's delay in fixing liability was material, there was no basis for penal action. The penalties were therefore set aside. en-us Wed, 30 Jun 2004 00:00:00 +0530 Wed, 09 May 2012 14:51:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113960 Under a capacity-based excise scheme, penalty under Rule 96ZQ was found unsustainable where the duty liability was quantified only later and the assessee had already paid the short-paid duty before that determination. The applicable mechanism required debit and payment after the competent authority fixed annual capacity and the corresponding duty. Because the revised duty had been discharged before final determination, and the department's delay in fixing liability was material, there was no basis for penal action. The penalties were therefore set aside. Case-Laws Central Excise Wed, 30 Jun 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113960