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2013 (2) TMI 37 - HC - Central ExciseLevy of interest for delayed payment of cess - Whether in the absence of levy provisions under the Oil Industry (Development) Act, 1974,(OID) the Revenue can apply the provisions of Section 11-AB of the Central Excise and Salt Act, 1944 and demand interest? - Held that:- As decided in Khemka & Co.'s case (1975 (2) TMI 91 - SUPREME COURT OF INDIA) the provision in the State Act imposing penalty for non-payment of income-tax within the prescribed time is not attracted to impose penalty on dealers under the Central Act in respect of tax and penalty payable under the Central Act. There is no lack of sanction for payment of tax. Any dealer who would not comply with the provisions for payment of tax, would be subjected to recovery proceedings under the Public Demands Recovery Act. A penalty is a statutory liability. The Central Act contains specific provisions for penalty. Those are the only provisions for penalty available against the dealers under the Central Act. Each State Sales Tax Act contains provisions for penalties. It is rightly said that those provisions cannot apply to dealers under the Central Act because the Central Act makes similar provisions. The Central Act is a self-contained code which by charging section creates liablity for tax and which by other sections creates a liability for penalty and impose penalty. Section 9(2) of the Central Act creates the State authorities as agencies to carry out the assessment, reassessment, collection and enforcement of tax and penalty by a dealer under the Act. Thus respectfully follow the decisions of in Khemka & Co.'s case (supra) and India Carbon's case 1997 (7) TMI 566 - SUPREME COURT OF INDIA) hold that interest can be levied and charged on delayed payment of tax only if the statute that levies and charges the tax makes a substantive provision in this behalf. Since the provisions of the OID Act do not contain any provision for levy of interest on delayed payments of cess, the respondents are not entitled to demand that the petitioner pays interest on the alleged delayed payments of cess. Also in complete agreement with the decision in Devi Dass Gopal Krishan's case (2000 (12) TMI 108 - HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH) there is nothing in the language of Section 15(4) of the OID Act from which it can be inferred that it authorises the Central Government to charge interest on the delayed payment of cess. Section 11AA & AB was inserted in the 1944 Act with effect from 26.5.1995 by amending Act No. 22 of 1995. However, no corresponding amendment was made in Section 15(4) of the OID Act so as to empower the Central Government to charge interest in the case of default in the payment of cess.Therefore, Section 11AA/11AB of the 1944 Act cannot be invoked by the respondents for charging interest on the delayed payment of cess by the petitioner - in favour of assessee.
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