AMBUJA SYNTHETICS MILLS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS group of petitions raises a common question and therefore, all these matters are being disposed of by this common judgment.

(2.) THE constitutional validity of Rule 96ZQ(5)(ii) of the Central Excise Rules, 1944 (hereinafter referred to as 'the Rules, 1944'), as substituted by M.F. (D.R.) Notification No. 18/99 -CE (NT.) dated 28.2.1999, prescribing imposition of penalty equal to an amount of duty outstanding from an independent processor of textile fabrics in case such person fails to pay the amount of duty or any part thereof by the specified date, is challenged, on the ground that the aforesaid Rule, is ultra vires the Constitution.

(3.) A plain reading of the aforesaid Rule points out that if an independent processor fails to pay the amount of duty by the date specified In Sub -rule (3) then he is liable to pay the outstanding amount of duty and the interest as indicated in Clause (I) of Sub -rule (5) and also liable to pay a penalty as indicated in Clause (ii) of Sub -rule (5) of the Rule 962Q of the said Rules.