COMMISSIONER OF CENTRAL EXCISE Vs. GMP FINISHING MILLS

JUDGEMENT

(1.) Heard both sides.

(2.) The contention of the Revenue is that under Rule 96ZQ(3), the respondents were required to pay 50% of the duty payable for the calendar month by 15th of the month and remaining amount at the end of the month. The respondents had failed to discharge duty liability of Rs. 4,00,000/ - payable for the fortnight from 16 -4 -2000 to 30 -4 -2000 by the due date and discharged the same after 3 days from duo date i.e. 3 -5 -2000 along with interest. It is contention of the Revenue that the respondents were liable to penalty equal to the amount of duty not paid on due date. The Commissioner (Appeals) reduced the penalty to Rs. 20,000/ -.

(3.) Shri V. Valte, learned SDR, appearing for the Revenue pleaded that the Commissioner (Appeals) cannot reduce the penalty amount in view of the decision of Allahabad High Court in the case of Pee Aar Steels (P) Ltd. v. CCE, Meerut - 2004 (170) E.L.T. 406 (All.) = 2004 (93) ECC 633 (All.).