2007 (12) TMI 82

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..... under Rule 8 of the Central Excise Rules, 2002 during the period of dispute. However, there happened to be delay in payment of duty for four calendar months in 2003-04. The lower authorities demanded interest on the amount of duty for the period of delay at the rate of Rs.1,000/- per day under Rule 8(3). The case of the appellants is that they are not liable to pay interest at this rate. Their ca .....

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..... ) which provided for charging or interest at the rate of Rs.1,000/- per day is invalid and that consequently, interest chargeable on delayed payment has to be only at the rate of 2% per month. The Central Board of Excise and Customs, New Delhi, the Apex body of the respondent Department, has, in letter No.276/101/2005-CX. 8A, dated 16-2-2006, communicated the acceptance of the said Order of the Ho .....

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..... er demanding interest at the rate of Rs.1,000/- per day is set aside and this appeal is allowed to the extent of setting aside the above demand and holding that the payment of interest already made at the rate of 24% per annum satisfies the Revenue's demand under Rule 8(3) as sustained by the Hon'ble High Court of Rajasthan. (Dictated was pronounced in open Court)  
Case laws, Decisions .....

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