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2015 (9) TMI 251 - HC - VAT and Sales TaxPower to issue demand notice - manufacture of industrial alcohol as well as potable alcohol - Demand of interest u/s 38A - Held that:- In the case of the petitioner while questioning the validity of the amendment made in Rule 12 of the Rules, a Division Bench of this Court held in its judgment [2011 (7) TMI 1122 - ALLAHABAD HIGH COURT] that Rule 12 of the Rules was made in exercise of powers under Section 41 of the Act and such overtime charges required to be paid under Rule 12 of the Rules is in fact for grant of any exclusive or other privilege granted under Section 24 or Section 24-A of the Act, or for storing any intoxicant. The Division Bench held that prescription of overtime charges was a condition of the licence and that by the nature of its imposition it is a fee connected with parting in the privilege to run the distillery. - Therefore, if excise revenue is not paid within the stipulated period, then interest becomes leviable under Section 38-A of the Act. We are of the opinion that so long the decision of this Court dated 26.07.2011 stands and is not set aside by the Supreme Court, the imposition of interest by the respondent is justifiable under Section 38-A of the Act - Decided against the assessee.
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