TMI Blog2017 (8) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... o impose penalty under Rule 25 of the Rules. Appeal allowed - decided partly in favor of appellant. - Excise Appeal No. 72031/2013 - Final Order No. F/76497/2017 - Dated:- 8-8-2017 - Shri P. K. Choudhary, Hon ble Judicial Member For the Appellant : None For the Respondent : Sri A. Roy, Supdt. ( A. R. ) ORDER Per Shri P. K. Choudhary When the matter was called, none appeared on behalf of the appellants. As the issue lies in a narrow compass, the same is taken up for hearing. 2. Heard the Ld. A.R. on behalf of the Revenue. 3. The ratio relates to non-payment of interest for delayed payment of duty and penalty imposed under Rule 25 of the Central Excise Rules, 2002. 4. On perusal of the appeal records, I fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at with charging rates of interest, every time Statute is not to be amended but within the limit prescribed, the Central Government may adjust the rate of interest chargeable on delayed payments, 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 or 24% per annum, the charge of interest cannot be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We therefore, hold that Rule 8(3) to the extent it provides levy of interest at the rate of ₹ 1,000/- which is higher as alternative to charge of interest @ 2% on the amount of Duty means to be understood as 24% per annum on the amount of Duty in default is ultra vires to Section 11AB of the Act and cannot be sustained and is held inoperative. 15. Accordingly, the writ petition is allowed. The part of Rule 8(3) which includes expression at the rate of two per cent, per month or rupees one thousand per day, whichever is higher is held to be invalid. Consequently, interest chargeable on delayed payment had to be only at the rate of 2% per month or for that matter 24% per annum as notified by the State Government in terms of the Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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