2011 (2) TMI 1344

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.... law : "Whether penalty imposed under Rule 96ZQ(3) of erstwhile Central Excise Rules, 1944, can be reduced where a mandatory penalty equal to the duty is stipulated as per law?" 3. The respondent-assessee is engaged in the manufacture of excisable goods falling under Chapter 72 of the First Schedule to the Central Excise Tariff Act, 1985 and was at the relevant time working under the Compounded Levy Scheme and paying duty at Rs. 3,33,334/- per month (for two tonnes capacity) in two equal installments under Rule 96ZO(3) of the Central Excise Rules, 1944 (the Rules). Under the provisions of Rule 96ZO(3) of the Rules, the assessee was required to pay a sum of Rs. 3,33,334/- (calculated proportionately for two metric tonnes capacity) in ....

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....findings arrived at by the adjudicating authority and dismissed the appeal. The assessee carried the matter in second appeal before the Tribunal, who upon appreciation of the evidence on record, found that in respect of last two payments, the delay of one day had occurred being a bank holiday and a Sunday. In respect of the first payment, delay of 15 days had occurred. In respect of delay of one day, the Tribunal placed reliance upon a decision of the Bombay High Court wherein it had held that on applying the provisions of Section 10 of the General Clauses Act, 1897, the payment made on the day subsequent to the last day which happens to be a holiday, is the payment made within the stipulated time. In respect of the first payment where undi....