2005 (10) TMI 462

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....ssion for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. - The respondents herein are engaged in the manufacture of rectangular bars. They opted for lump sum duty payment under Rule 96ZP and Rule 3A. The annual capacity of production of the respondents' mill was fixed by the Commissioner on the basis of formula under Notifications 45/97-C.E., dated 30-8-1997 and 24/97-C.E., d....

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....and penalty of Rs. 72,400/-, i.e. equal to the duty outstanding, was issued. The notice was adjudicated by the Assistant Commissioner who confirmed the interest and the penalty proposed in the show cause notice. However, the lower appellate authority interpreted the notification to mean that only if the assessee failed to pay the whole of the duty, the liability to interest and penalty arises. Not....

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....tion also provides for imposition of penalty equal to amount of duty outstanding at the end of the month or five thousand rupees, whichever is greater. Since, admittedly, the assessees did not pay the whole of the amount of duty payable by the 10th of the month, they are liable to pay interest and are also liable to penalty. They had failed to pay the total duty payable by 30th April, 1998 (they d....