2008 (11) TMI 573

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....to pay the duty due for any month in the same month. As per the rule penalty payable in cases of default in payment of duty due in the same month was provided in the following proviso to sub-rule (3) of Rule 96ZP of CER :- "Provided also that where a manufacturer fails to pay the whole of the amount of duty payable for any month by the 10th day of such month, he shall be liable to pay :- (i) the outstanding amount of duty along with interest thereon at the rate of eighteen percent per annum calculated for the period from the 11th day of such month till the date of actual payment of the outstanding amount; and (ii) a penalty equal to the amount of duty outstanding from him at the end of such month or five thousand rupees, ....

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....0 did not alter the 'duty' which the assessee was liable to pay under the compounded levy scheme. Ld. JCDR submits that the Apex Court held in its judgment in UOI v. Dharmendra Textile Processors [2008 (231) E.L.T. 3 (S.C.)] that when the statute provided for imposition of penalty equal to the duty as in Section 11AC and Rule 96ZO of the CER, the authorities had no discretion to impose penalty less than the one prescribed. The language of Rule 96ZP (3) prescribing penalty was almost identical to that under Rule 96ZO (3). Therefore, the Apex Court's interpretation of Section 11AC and Rule 96ZO made the scope of 96ZP(3) is free from doubt. In view of this position the appeal deserved to be dismissed. 4. I have carefully considered the....