9911796707
TMI Blog2004 (5) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... tution is the order dated 13-8-2002 passed by the Commissioner (Appeals), Central Excise and Customs, Surat, in Appeal No. 33 of 2001 rejecting the petitioners' appeal against the order dated 13-11-2000 passed by respondent No. 3, Deputy Commissioner of Central Excise Customs (L R) Surat, imposing penalty of Rs. 2,58,000/- under Rule 96ZQ(5) (ii) of the erstwhile Central Excise Rules, 1944 ('t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um 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." "11. Having heard the learned counsel for the parties, we are of the view that since Rule 96ZQ (5) (i) provided for levy of interest on delayed payment and sub-rule (ii) provided for penalty for such delay, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 percent penalty will be three times the amount of interest (36% ´ 3 = 108%). This means, the penalty should not be at a rate higher than 100% per annum calculated for the outstanding period on the outstanding amount. It, therefore, appears to us that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 13-11-2000, it is clear that the delay in payment of the duty amount was only 3 days. Since neither the original authority nor the appellate authority has considered the extent of delay in payment, we set aside the Order in Original and the Order of the appellate auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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