TMI Blog2009 (4) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... ayed payment of Cess. Demand of interest set aside - appeal allowed - decided in favor of appellant. - E/797/2007 - 883/2009 - Dated:- 1-4-2009 - Shri T.K. Jayaraman and M.V. Ravindran, JJ. Shri G. Shivadass, Advocate, for the Appellant. Smt. Joy Kumari Chander, JCDR, for the Respondent. ORDER This appeal is directed against the Order-in-Appeal No. 34-35/2007 dated 8-8-2007. 2. The relevant facts that arise for consideration are : that the appellant herein are producers of Crude Oil and Natural Gas falling under CH 27 of the First Schedule to the Central Excise Tariff Act. As per the provisions of Section 15(2) of the Oil Industry (Development) Act, 1974, Cess is payable on the Crude Oil received in a refinery or a f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of such Cess - Section 15(4) of the Oil Industry (Development) Act, 1974 As per the provisions of Rule 8(3) of Central Excise Rules, 2001/2002 - If the assessee fails to pay the amount of duty by due date, he shall be liable to pay the outstanding amount along with interest at the rate specified by the Central Government vide Notification under Section 11AB of the Act on the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount. In this regard, Board vide Circular No. 766/82/2003-CX dated 15-12-2003 has issued instructions that when the assessee fails to pay the duty within the stipulated date, the amount of duty outstanding along with interest should b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .-Kolkata) is no more a good law as the said judgment in order of the Tribunal has been set aside by the Hon ble Supreme Court and the matter has been remanded back to the Tribunal for hearing the matter afresh as reported at 2003 (157) E.L.T. A256 (S.C.). 4. The learned JCDR, on the other hand, would reiterate the findings of the learned Commissioner (Appeals) and submit that once Section 15 of IOD Act, 1974 provides for collection levy of the cess as duties of excise, all the provisions of Central Excise Act would be applicable to it. 5. We have considered the submissions made by both sides and perused the records. We have already reproduced the findings of the Commissioner (Appeals) above. It can be seen from the above reproduced por ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication in the Official Gazette, specify : Provided that until the Central Government specifies by such notification the rate of the duty of excise in respect of crude oil (being an item specified in the Schedule) the duty of excise on crude oil under this sub-section shall be levied and collected at the rate of rupees sixty per tonne. (2) Every duty of excise leviable under sub-section (1) on any item shall be payable by the person by whom such item is produced and in the case of crude oil, the duty of excise shall be collected on the quantity received in a refinery. (3) The duties of excise under Sub-section (1) on the items specified in the Schedule shall be in addition to any cess or duty leviable on those items under any other l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harging or payment of interest in Section 9(2) occur in what may be called the latter part thereof. Section 9(2) authorizes the sales tax authorities of a State to assess, reassess, collect and enforce payment of the central sales tax payable by a dealer as if it was payable under the State Act; this is the first part of Section 9(2). By the second part thereof, these authorities are empowered to exercise the powers they have under the State Act and the provisions of the State Act, including provisions relating to charging and payment of interest, apply accordingly. Having regard to what has been said in the case of Khemka Co., it must be held that the substantive law that the States sales tax authorities must apply is the Central Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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