TMI Blog2013 (12) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... tax authorities only if the Central Act makes a substantive provision for the levy and charge of interest on Central sales tax and only to that extent - There being no substantive provision in the Central Act requiring the payment of interest on Central sales tax, the States' sales tax authorities cannot, for the purpose of collecting and enforcing payment of Central sales tax, charge interest. The provisions of Section 15 of the OID Act and noted that the said section does not contemplate for levy of any interest for delayed payment on oil cess - 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 - the provisions of the OID Act do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering in an identical issue and wherein their Lordships have held that interest cannot be demanded under the provisions of Central Excise Act, 1944 or the rules made there under. 5. After considering submission made by Ld. D.R. and the perusal of the orders produced by the Ld. Counsel, I find that the decision of the tribunal in the case of ONGC Ltd. is directly on the point (wherein I was one of the member) the tribunal has held that under: "5.1 It can be noticed that the charging section of the OID Act, 1974 clearly talks about duties of excise and provisions of sub-section (4) of Section 15, which specifically indicates that the provisions of the Central Excise Act ana the Rules made thereunder, including those relevant to refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, for procedural purposes alone, the provisions of the State Act are available. The provision relating to interest in the latter part of Section 9(2) can be employed by the Stales' sales tax authorities only if the Central Act makes a substantive provision for the levy and charge of interest on Central sales tax and only to that extent. There being no substantive provision in the Central Act requiring the payment of interest on Central sales tax, the States' sales tax authorities cannot, for the purpose of collecting and enforcing payment of Central sales tax, charge interest thereon." 5.2 As we have already reproduced the provisions of Section 15 of the OID Act and noted that the said section does not contemplate for levy of any int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the 1944 Act were made applicable for levy and collection of duties of excise on any produce specified in the schedule to the OID Act. However, there is nothing in the languages of Sections 15 (4) of the OID Act from which it can be inferred that it authorities the Central Government to charge interest on the delayed payment of cess Section 11AA AB was inserted in the 1944 Act with effect from 26.05.1995 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, we hold that Section 11AA/11AB of the 1944 Act cannot be invoked by the respondents for charging interest on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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