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TMI Blog2007 (3) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... issue and arise out of the same order-in-appeal dated 27-1-2003. All the assessees were working under the Compounded Levy Scheme and have made monthly payments after the due dates for one or more months. In each of these cases, the Original Authority imposed penalty under Rule 96ZQ 5(ii) equal to the amount outstanding at the end of month. On appeal(s) by the parties, the Com missioner (Appeals) reduced the penalty to 10% of the penalty imposed by the Original Authority. The assessees are in appeal seeking total waiver of penalties, whereas the Department is in appeal seeking restoration of penalty imposed by the original authority. Therefore, the appeals are being disposed of by a common order. 2. The relevant facts, in brief, as they re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was reduced on party's appeal to Rs. 40,000/- by the Commissioner (Appeals). M/s. Dinesh Dyeing & Printing Works - Party's Appeal Nos. E/1115 to 1117/2003 - Department's Appeal Nos. E/1180 to 1182/2003 In the first case, there was a default in paying a sum of Rs. 2 lakhs before 31-8-2000 which was paid by the assessee on 1-9-2000 and accordingly the Original Authority imposed a penalty of Rs. 2 lakhs which was reduced on party's appeal to Rs. 20,000/- by the Commissioner (Appeals). In the second case, there was a default in paying a sum of Rs. 40,000/- before 28-2-2001 which was paid by the assessee on 1-3-2001 and accordingly the Original Authority imposed a penalty of Rs. 40,000/- which was reduced on party's appeal to Rs. 4,000/- b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- by the Commissioner (Appeals). 3. We have considered the submissions on behalf of both sides and perused the case records. 4. In the case of M/s. Balakrishna Dyeing & Printing Mills and M/s. Singhvi Processors Pvt. Ltd., it was admitted that 30-9-2000 was half yearly accounting day for the Bank and the transactions were closed to the public and the Department had not made any alternative arrangement to receive the dues on the last day. The succeeding days i.e. 1-10-2000 and 2-10-2000 were holidays being Sunday and Gandhi Jayanti respectively and, therefore, the duty was paid on 3-10-2000 by the assessees. We hold that in these cases, the time for payment should be computed as provided for in Section 10 of the General Clauses Act, 189 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and due to the fact that their bank accounts were in a particular bank and the excise duty has to be paid through a specified bank as nominated by the Department. They also submitted that the applicable interest at high rate has been paid. The Hon'ble Gujarat High Court in the case of Parmeshwar Dyeing & Printing Mills Pvt. Ltd. v. Union of India, 2005 (191) E.L.T. 86 (Guj.), has held, in similar circumstances, that imposition of penalty equal to the duty outstanding was not warranted. The learned SDR submits that there has been delay in these cases and even if it is of one day, as per rules, the penalty is imposable which is Rs. 5,000/- or the amount equal to the outstanding amount at the end of the month whichever is higher. 5.1 Follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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