Law: Excise Duty on Production Capacity, (Sugar) Rules, 1972)

Section:

  Excise Duty on Production Capacity (Sugar) Rules, 1972-- ----8. 5--Notification No. SRO 913 (1)/75 dated 21-8-1975--Constitution of Pakistan (1973), Art.199---Penalty, refund of---Customs Department assessed production capacity of petitioner mill at 22,800 tons per annum ---Assessee was also made liable to pay additional amount of duty at rates specified therein under R. 5 (3) of said Rules---Rule 5(3) was substituted through notification dated 21-8-1975 whereby newly framed sub-rules (3) & (4) were added which provided payment of penalty instead of calling it as additional duty---Petitioner challenged levy of penalty and applied for refund of amount which amount was paid as penalty---Collector, Central Excise, recommended to Central Board of Revenue for refund of amount but his recommendation had not been accepted by Central Board of Revenue although there existed no justifiable reason for Central Board of Revenue, to refuse recommendation regarding refund of amount of penalty-- Case was remanded to Board of Revenue with direction to dispose of recommendation in accordance with law. Mushtaq Memon for Petitioner. Zaheer Khan for Respondents. Date of hearing 15th August, 1989.   JUDGMENT AJMAL MIAN, CJ.--The petitioner had set up a sugar mill at Shahpur Jahanian, Taluka Moro, District Nawabshah which went into production in November, 1971. It seems that in 1972 the Central Excise & Land Customs Department assessed the production capacity of the petitioner at 22,800 tons per annum which was challenged in Const. Petition No. 463/1975, which petition was withdrawn on 18-10-1977.1t appears that under Rule 5 (1) of the Excise Duty on Production Capacity (Sugar) Rules, 1972, hereinafter referred to as the 'Rules', the Excise Duty was payable in 8 equal instalments, which Rule was amended, whereby the payment was provided in 12 monthly instalments of the Excise Duty on the assessed amount of the Excise Duty per annum. It further seems that under sub-Rule (3) of Rule 5 in case of delay in payment of the Excise Duty in terms of above sub-Rule (1) of rule 5, the. assessee was liable to pay   additional amount of duty at the rates specified…