https://www.taxtmi.com/caselaws?id=118309 Penalty under the compounded levy scheme could not be sustained where the duty liability itself rested on a capacity-fixing rule later held unconstitutional, making the underlying demand ab initio illegal. A penalty imposed solely for delayed payment of such duty therefore failed on principle. Independently, the assessee had acted on the Commissioner's original orders, received the corrigenda only much later, and any delay was minimal, so the maximum penalty was disproportionate. The penalty under Rule 96ZQ(5)(ii) was set aside in favour of the assessee. en-us Fri, 30 Jun 2006 00:00:00 +0530 Fri, 29 Jun 2012 17:50:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118309 Penalty under the compounded levy scheme could not be sustained where the duty liability itself rested on a capacity-fixing rule later held unconstitutional, making the underlying demand ab initio illegal. A penalty imposed solely for delayed payment of such duty therefore failed on principle. Independently, the assessee had acted on the Commissioner's original orders, received the corrigenda only much later, and any delay was minimal, so the maximum penalty was disproportionate. The penalty under Rule 96ZQ(5)(ii) was set aside in favour of the assessee. Case-Laws Central Excise Fri, 30 Jun 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118309