Three excise rules declared unconstitutional
The Supreme Court ruled that the demand for interest and penalty under Rules 96ZO, 96 ZP and 96 ZQ of the Central Excise Rules was illegal.
The direct and immediate impact upon the fundamental right of the citizen is that he is exposed to a huge liability by way of penalty for reasons which may in given circumstances be beyond his control and/or for delay which may be minimal. The possibility of achieving the object of deterrence in such cases can be achieved by imposing a less drastic restraint.
Shree Bhagwati Steel Rolling Mills vs. CCE