TMI Blog2005 (2) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged delayed payment of cess. 2.One of the contentions at the threshold raised by Mr. A. Rajasekhara Reddy, learned Senior Standing Counsel for Central Government, was as to the maintainability of the writ petition on the ground of availability of alternative efficacious remedy of appeal against the impugned order levying interest. We are inclined to admit the writ petition, as noticed above, the question as to the very jurisdiction to levy interest is raised, the petitioner having taken a conscious decision to test the impugned order on the ground of jurisdiction. 3. By an Act No. 47 of 1972, Oil Industry (Development) Act, 1974 (for short 'OID Act') was enacted for establishment of a Board for development of oil industry and for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the C.E. Act whilest the cess is payable when it is received in refinery in the case of OID Act. This contention, prima facie, in our view, finds support from the provisions in Section 15(2) of the OID Act and the Circular No. 18/1988, dated 20th May, 1988 prescribing the procedure for payment of the cess on crude oil. Under this circular, oil producing companies shall debit the amounts of cess on receipt of information on the actual quantity of net crude oil received by refineries and within 20 days after the close of each month oil producing companies shall file monthly returns in this regard. The monthly returns and PLA Register are to be the basis for finalisation of the assessment of cess. In case of difference, a show cause no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss by the petitioner. While insisting upon the due date which has been determined as per Rule 8 of Central Excise Rules as 5th of the following month, respondent authorities are insisting on payment of interest for the 'delayed' payment of cess. The petitioner inter alia seeks a direction upon respondent Central Excise authorities to follow Govt. of India's Notification No. 18/1988. These are questions which can appropriately be considered at the hearing of the writ petition. The questions are nevertheless one relating to jurisdiction apart from the applicability of the substantive provisions of the C.E. Act and the Rules made thereunder to the cess under the OID Act. 6.Interim relief prayed for is with regard to recovery of interest levi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not provide for levy of interest. The provisions of C.E. Act are applicable for procedural purposes in relation to levy and collection of duties. There being no substantive provision in the OID Act, levy of interest can be by substantive provision only, we are of the view that prima facie case is made out the petitioner for grant of interim directions. 10.Accordingly, pending consideration of the contentions raised in the writ petition, there shall be a direction upon third and fourth respondents not to take any coercive steps for recovery of the interest demanded by the said respondents from the petitioner for the period relating to April 2001 to February 2004, pending disposal of the writ petition. Liberty, however, is reserved to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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