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2015 (9) TMI 251

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..... 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. - Civil Misc. Writ Petition No. 475 of 2012 - - - Dated:- 3-9-2015 - Hon'ble Tarun Agarwala And Hon'ble Surya Prakash Kesarwani, JJ. ORDER .....

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..... t by the nature of its imposition it is a fee connected with parting in the privilege to run the distillery. 3. The petitioner along with other similarly situated persons filed Special Leave Petition before the Supreme Court, which was entertained and leave was granted by an order dated 09.01.2012 holding that the appeals would be heard. The appeals are still pending disposal before the Supreme Court of India. 4. Thereafter, demand notices dated 22.03.2012 and 27.03.2012 were issued demanding payment of interest on late deposit of overtime charges. The petitioner made a representation and, while the representation was pending, the respondents deducted the amount from the advance excise duty from the account of the petitioner. The pe .....

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..... shall be payable from the date such excise revenue becomes payable till the date of actual payment. Provided that until a higher rate is prescribed, the rate of interest will be eighteen percent per annum; Provided further that in respect of an excise revenue which became payable before the commencement of the Uttar Pradesh Excise (Amendment). Act, 1985 interest at the said rate shall be payable from the date of such commencement if the excise revenue is not paid within 3 months of the said date. Explanation - Nothing in this sub-section shall be construed to affect act the payment of interest under an agreement, the terms of an auction or, a decree of the court, passed before the date of commencement of the Uttar Pradesh Exc .....

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..... 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 dated 26.07.2011 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. 11. In the light of the aforesaid decision of the Division Bench in the c .....

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