TMI Blog2010 (6) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... ch ever is higher in terms of Rule 8(3) of Central Excise Rules, 2002. Accordingly, an amount of Rs. 1,36,000/- was demanded as interest from the respondents. On an appeal filed by the respondents, Commissioner (Appeals) set aside the demand on the ground that assessee has sufficient balance in the PLA all through the period and therefore, no interest is needed to be paid. Held that – though on eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re used in the manufacture of non-dutiable goods i.e. generation of electricity, respondent was required to pay duty on NGL and ARN. Accordingly, once in a month they were discharging the duty liability. During the period from April 2003 to March 2004, while making such deposit there was some delay in every month. Department took a view that for such delayed payment, the respondent was required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltra vires. Therefore, the demand for interest for Rs. 1000/- per day cannot be sustained. As regards interest @ 2% which is justified under the Rule, learned advocate submitted that Commissioner has rightly decided that assessee through out the period had PLA balance running to more than Rs. 10 Lakhs in their account and this represented the amount which al ready deposited by them and credit to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR6 Challans has to be treated as payment of duty and date of credit has to be deemed as the date of payment. In these circumstances, it is to be held that respondents are liable to pay 2% interest for the period of delay. Learned advocate for the respondents graciously agrees that respondent would quantify the amount subject to verification by the appropriate Central Excise authority. Appeal fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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