COMMISSIONER OF CENTRAL EXCISE Vs. ALLIED INDUSTRIES

JUDGEMENT

(1.) AGGRIEVED by the order passed by the Tribunal in reducing the penalty imposed on the assessee under Section 96ZP(3) of the Central Excise Rules, the Revenue is before this Court by filing the present appeal. This Court, vide order dated 28.4.06, admitted the appeal on the following substantial questions of law : -

(2.) THE respondent is a manufacturer of iron and steel products falling under Chapter 72 of the Central Excise Tariff Act, 1985. The respondent filed declaration opting for payment of duty under the compounded levy scheme in terms of sub -section (1) of Section 3A of the Central Excise Act read with Rules 96 ZP of the Central Excise Rules and accordingly, duty was determined by the Commissioner. Under the provisions of Rule 96 ZP (3) of the Rules, the manufacturer, who had opted for compounded levy scheme will have to pay the whole amount of duty so determined by the 10th day of such month and on failure to pay the amount, the duty is liable to be paid alongwith interest and penalty is also leviable. Since the respondent/assessee failed to pay the duty as prescribed, show cause notice dated 24.9.98 was issued demanding payment of duty with interest and penalty was also proposed. After due process of law, the sum as was payable was re -determined and the Deputy Commissioner also fixed the penalty at Rs.37,818/ - under Rule 96 ZP (3) of the Rules.

(3.) HEARD Mr. Vikram Ramakrishnan, learned standing counsel appearing for the Department/appellant. Though notice has been served, there is no representation for the respondent.