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2017 (3) TMI 1620 - AT - Central ExciseDemand of interest - failure to pay interest on due dates - Held that - there is no provision in the Oil Industry (Development) Act 1974 for demand of interest for delayed payment of cess - interest cannot be levied - appeal dismissed - decided against Revenue.
Issues: Failure to pay cess under the Oil Industry (Development) Act, 1974 leading to demand of interest and penalty. Appeal against Order-in-Appeal No. 14/DIB/CE(A)/GHY/2013.
In this case, the appellant failed to pay the cess under the Oil Industry (Development) Act, 1974 on crude oil, which resulted in the issuance of Show Cause Notices. The Assistant Commissioner confirmed the demand of interest and imposed penalties on the appellant for the period from April 2002 to June 2003. The First Appellate Authority allowed the appeal filed by the appellant, leading to the appeal by the appellant-Revenue before the Tribunal. The ld. AR representing the revenue reiterated the Adjudicating Authority's order. The Tribunal observed that there is no provision in the Oil Industry (Development) Act, 1974, for the demand of interest for delayed payment of cess. The Tribunal emphasized that interest can only be levied if the statute that levies the tax includes a substantive provision for it. Relying on a previous decision, the Tribunal upheld the impugned order, rejecting the appeal. This judgment highlights the importance of statutory provisions in determining the levy of interest on delayed payments of tax. It underscores the necessity for a clear legal basis for imposing interest, emphasizing that such provisions must be explicitly stated in the relevant legislation. The decision also showcases the Tribunal's reliance on precedent to interpret and apply legal principles in tax matters.
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