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2014 (11) TMI 781 - HC - Central ExciseDelay in payment of excise duty - Demand of interest u/s 11AB - Rate of interest - Held that:- Part of Rule 8(3) of the Central Excise Rules, 2002, which was prevailing at the relevant time as per Notification No. 12/2003, dated 1st March 2003, which includes expression, “at the rate of two per cent per month or rupees one thousand per day, whichever is higher” is held to be invalid and consequently, it is held that the interest chargeable on the delayed payment had to be only at the rate of two per cent per month, or for that matter twenty four per cent per annum, as notified by the Government at the relevant time in terms of Section 11AB of the Central Excise Act, and consequently, the impugned demand notices are also quashed and set aside. - Decided in favour of assessee.
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