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2014 (9) TMI 240 - HC - Central ExciseInterest u/s 11AA - delayed payment of duty - Held that - liability for payment of interest on delayed payment of duty has been imposed where a person chargeable with duty determined under sub-section (2) of Section 11A fails to pay such duty within three months from the date of such determination. The proviso however makes such provision in case of those who are chargeable with duty determined under sub-section (2) of Section 11A before the date on which Finance Bill 1995 receives the assent of the President failed to pay such duty within three months from such date. The Explanation 1 however stipulates that where the duty determined to be payable is reduced by the Commissioner (Appeals) Appellate Tribunal National Tax Tribunal or as the case may be the court the date of such determination shall be the date on which an amount of duty is first determined to be payable. If that be so proviso to sub-section (1) of Section 11AA of the Act of 1944 on its application shows that the petitioner failed to pay duty within three months from the date of determination by the Tribunal. The order of the Tribunal passed on 22-5-1998. The petitioner was therefore under an obligation to pay the amount of duty within a period of three months thereof. However the petitioner admittedly paid the remaining amount of duty only on 24-10-1998 whereas period of three months expired on 22-8-1998. Thus there was a delay in payment of duty by a period of a little less than two months. For this period i.e. from 22-8-1998 to 24-10-1998 the petitioner is liable to make payment of interest on delayed payment of duty as required under Section 11AA of the Act of 1944. impugned demand notice dated 22-12-2003 is held illegal and set aside - Decided partly in favour of assessee.
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