https://www.taxtmi.com/caselaws?id=237804 A mandatory minimum penalty for delayed payment of fortnightly duty under the compounded levy scheme was treated as unsustainable where it required a fixed penalty equal to the outstanding duty without discretion to consider the extent or circumstances of delay. The legal point applied was that such an inflexible penalty structure had already been held ultra vires as an excessive and unreasonable restriction. On that basis, liability for delayed payment was maintained, but the penalty equal to the entire outstanding duty was set aside to that extent and reduced to Rs. 5,00,000. en-us Tue, 16 Oct 2012 00:00:00 +0530 Wed, 09 Oct 2013 05:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=237804 A mandatory minimum penalty for delayed payment of fortnightly duty under the compounded levy scheme was treated as unsustainable where it required a fixed penalty equal to the outstanding duty without discretion to consider the extent or circumstances of delay. The legal point applied was that such an inflexible penalty structure had already been held ultra vires as an excessive and unreasonable restriction. On that basis, liability for delayed payment was maintained, but the penalty equal to the entire outstanding duty was set aside to that extent and reduced to Rs. 5,00,000. Case-Laws Central Excise Tue, 16 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=237804