2015 (10) TMI 1547

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....d levy scheme as envisaged under Section 3A of the Central Excise Act, 1944. The appellant has not discharged duty liability as fixed under Rule 96ZP(3) of the Central Excise Act, 1944 therefore show cause notice No. JR/SCN/RAJURI/98 dated 2/9/1999 was issued proposing demand of Rs. 1,70,350/- and also for recovery of interest and penalty under Rule 96ZP(3). Adjudicating authority confirmed demand of duty vide order-in-original No. 9/2003 dated 30/6/2003 however appellant has not challenged duty and paid duty without contesting the same. Subsequently, another order-in-original No. 93/2003 dated 22/3/2004 was passed wherein adjudicating authority has demanded interest and equal amount of penalty under Rule 96ZP(3). Aggrieved by the said orde....

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....r imposition of penalty and interest under the compounded levy scheme. 4. I have carefully considered the submission made by Ld. AR and perused the record in the appeal memorandum. 5. There is no dispute that there is a delay in payment of duty under compounded levy scheme as envisaged under Section 3A of the Central Excise Act, 1944. The appellant has not also disputed the duty liability and admittedly paid the same. The penalty and interest were imposed by the adjudicating authority in terms of Rule 96ZP(3) of the Central Excise Act, 1944, which is reproduced below:- Provided also that where a manufacturer fails to pay the whole of the amount of duty payable for any month by 15 th day of such month, as the case may be, he shall be liab....