Compounding fee not payable as provision of Legal Metrology Act not violated

Indian Oil Corporation Ltd Vs Director Of Legal Metrology & Ors (Delhi High Court) Delhi High Court held that as the appellants couldn’t be held to have been violated any provision of the Legal Metrology Act, they shouldn’t be held liable to pay a compounding fee. Compounding fee is not in nature of a tax or duty. Facts- All the appellants had imported fuel dispensing equipment from M/s Dresser Wayne Fuel Equipment (Shanghai) Co. Ltd. and M/s Tatsuno for use at various retail outlets situate throughout the country. The units were imported without obtaining the registration as contempla...