https://www.taxtmi.com/caselaws?id=801128 Under the compounded levy scheme, capacity-based duty must be determined from verified production-capacity parameters and charged at the prescribed rate applicable to the chosen payment option. A demand cannot be confirmed on an annual-capacity basis not proposed in the show cause notice. No duty accrues after permanent factory closure where no production occurs, and duty paid in excess of liability calculated on the correct capacity and rate is refundable. Interest and penalty under Rules 96ZO, 96ZP and 96ZQ cannot be sustained because those provisions had been declared ultra vires. en-us Mon, 28 Sep 2026 00:00:00 +0530 Fri, 16 Oct 2026 05:20:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801128 Under the compounded levy scheme, capacity-based duty must be determined from verified production-capacity parameters and charged at the prescribed rate applicable to the chosen payment option. A demand cannot be confirmed on an annual-capacity basis not proposed in the show cause notice. No duty accrues after permanent factory closure where no production occurs, and duty paid in excess of liability calculated on the correct capacity and rate is refundable. Interest and penalty under Rules 96ZO, 96ZP and 96ZQ cannot be sustained because those provisions had been declared ultra vires. Case-Laws Central Excise Mon, 28 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801128