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2010 (6) TMI 238 - CESTAT, AHMEDABADInterest - During the period from April 2003 to March 2004, while making such deposit there was some delay in every month. Department took a view that for such delayed payment, the respondent was required to pay 2% or Rs. 1000/- per day, which ever is higher in terms of Rule 8(3) of Central Excise Rules, 2002. Accordingly, an amount of Rs. 1,36,000/- was demanded as interest from the respondents. On an appeal filed by the respondents, Commissioner (Appeals) set aside the demand on the ground that assessee has sufficient balance in the PLA all through the period and therefore, no interest is needed to be paid. Held that – though on equity ground assessee have a strong case but a strict legal interpretation required that the duty payment had to be considered as having been made only when debit is made in PLA or when TR 6 Challans evidencing payment is submitted. Assessee liable to pay 2% interest for period of delay.
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