https://www.taxtmi.com/caselaws?id=212239 Under the compounded levy scheme, failure to discharge excise duty by the due date attracts the statutory penalty under Rule 96ZQ(5)(ii). The rule fixes penalty at the outstanding duty amount or Rs. 5,000, whichever is higher, and leaves no discretion to impose a lesser sum. A challenge based on the capacity determination rules and on the argument that no penalty could be imposed was rejected because the relevant sub-rule remained operative and had not been held ultra vires. The penalty was therefore treated as validly imposed and enforceable where the assessee, having opted into the scheme, paid after the due date. en-us Fri, 27 May 2011 00:00:00 +0530 Thu, 12 Apr 2012 18:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=212239 Under the compounded levy scheme, failure to discharge excise duty by the due date attracts the statutory penalty under Rule 96ZQ(5)(ii). The rule fixes penalty at the outstanding duty amount or Rs. 5,000, whichever is higher, and leaves no discretion to impose a lesser sum. A challenge based on the capacity determination rules and on the argument that no penalty could be imposed was rejected because the relevant sub-rule remained operative and had not been held ultra vires. The penalty was therefore treated as validly imposed and enforceable where the assessee, having opted into the scheme, paid after the due date. Case-Laws Central Excise Fri, 27 May 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=212239