New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (9) TMI 149 - MADRAS HIGH COURT

2015 (9) TMI 149 - MADRAS HIGH COURT - 2015 (322) E.L.T. 705 (Mad.) - Challenge to Rule 8(3) of the Central Excise Rules - Violation of Articles 14, 19(1)(g), 50 and 265 of the Constitution of India - whether interest is chargeable in terms of Rule 8(3) Central Excise Rules or under the provisions of Section 11AB of the Central Excise Act - Held that:- Rule 8(3) of the Central Excise Rules in respect of levy of interest at the rate of ₹ 1000/- per day is held to be invalid. Consequently, t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. Jayachandran For the Respondent : Mr. K. Mohanamurali, Mr. T. Chandrasekaran, Mr. Vikram Ramakrishnan, Mr. Haja Mohideen Gisthi Common Order (Order of the Court was made by R. Sudhakar,J.) The above Writ Petitions are filed challenging Rule 8(3) of the Central Excise Rules as violative of Articles 14, 19(1)(g), 50 and 265 of the Constitution of India and also to set aside the consequent demand. 2. In all the above Writ Petitions, the issue that arise for consideration is whether interest is ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

le 8(3) of the Central Excise Rules to the extent it provides levy of interest is ultravires to Section 11AB of the Central Excise Act and cannot be sustained. 4. Heard learned counsel appearing for the petitioners and the learned Standing Counsel appearing for the respondents. 5. In the case of 2006 (200) E.L.T. 377 (Raj.) (Lucid Colloids Limited V. Union of India), while considering the challenge made to Rule 8(3) of the Central Excise Rules, the Rajasthan High Court, after extensively analyzi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, making it sure that delayed payment not become profitable on account of charge of interest at rate lower than market rate of interest. 10. The prescription of limit of rate of interest at 10% per annum and 36% per annum respectively also makes it clear that basic base of charge of interest is rate per annum and not on any other basis. The provision made in Rules results in altering the nature of charge of interest from compensatory to penalty. By providing rate of interest @ 2% p.m. interest o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

default for the period, the assessee remains in default of payment. Permitting charge of interest at the rate of ₹ 1,000/- per day is not computable in relation to amount of Duty in default. Whether ₹ 1,00,000/- is not paid in time or ₹ 1,000/- is not paid in time, the interest chargeable under the Rules remains ₹ 1,000/- per day. Such a device is not permitted by Parent Act. 12. Therefore, to the extent rule provides other than the rate of interest as an alternative mode .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version