2004 (5) TMI 83

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.... challenged in this petition under Article 226 of the Constitution is the order dated 23-10-2002 passed by the Commissioner (Appeals), Central Excise and Customs, Surat, in Appeal Nos. 964 to 981 of 2002 reducing the amount of penalty from Rs. 24 lakhs to Rs. 12 lakhs under Rule 96ZQ(5)(ii) of the erstwhile Central Excise Rules, 1944 ('the Rules' for short), for the delay of about 10 to 15 days in....

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....(3), he shall be liable to, - (i) Pay the outstanding amount of duty along with interest at the rate of thirty-six per cent per annum calculated for the outstanding period on the outstanding amount; and (ii)  a penalty equal to an amount of duty outstanding from him or rupees five thousand, whichever is greater. Having heard the learned counsel for the"11. parties, we are of the view....

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....he quantum of penalty. Penalty for delay of nine days can not be the same as penalty for the delay of one year in paying the excise duty. Since the rate of interest stipulated in sub-rule (i) is 36% per annum calculated for the outstanding period on the outstanding amount, the hundred per cent penalty will be three times the amount of interest (36% x 3 = 108%). This means, the penalty should not b....

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....lear whether the petitioners had paid any interest for the delayed payment of duty under Rule 96ZQ(5)(i) and if interest is not paid so far, the same shall be computed and paid within one month from today. 5.From the details given in the Order in Original dated 16-7-2001, it is clear that the delay in payment of the respective amounts was ranging between 10 days to 16 days. Since neither the or....