2004 (1) TMI 99 - HC - Central Excise

Summary

Issues:
Challenge to penalty imposed under Rule 96ZQ (5)(ii) of the Central Excise Rules.

Analysis:
The judgment pertains to a petition challenging an order-in-original dated 30-11-2000, where a penalty was imposed under Rule 96ZQ (5)(ii) of the Central Excise Rules. The Court referred to a previous judgment where it directed the assessing authority to consider penalties reasonably and not as a mandatory maximum. The Court emphasized that penalties should be levied based on the facts and circumstances of each case, with discretion given to the assessing authority. It cited the Hindustan Steel Ltd. case, stating that penalties cannot be imposed solely for procedural non-compliance.

The Court heard arguments from both parties and noted that the present case aligns with the principles established in the previous judgment. Consequently, the Court allowed the petition, quashed the impugned order imposing the penalty, and remanded the matter back to the Assistant Commissioner. The authorities were instructed to reevaluate and impose a penalty in accordance with the law and the observations made in the previous judgment. The Rule was made absolute to the extent mentioned, with no costs imposed on either party.