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of <h1>Appeal allowed: Interest demand on delayed Cess payments set aside under Oil Industry Act.</h1> <h3>OIL & NATURAL GAS CORPN. LTD. Versus CC. & CE., VISAKHAPATNAM-II</h3> The Tribunal allowed the appeal, setting aside the demand for interest on delayed Cess payments under the Oil Industry (Development) Act, 1974. The ... Interest on the delayed fortnightly Cess payments - Oil Industry (Development) Act, 1974 (OID Act, 1974) - Held 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 and the Rules made thereunder, including those relevant to refund and exemption from duties, shall, as far as may be, applied in relation to the levy and collection of duties of excise leviable under section. There is no provision in the OID Act, 1974 for demand of interest for delayed payment of Cess. Demand of interest set aside - appeal allowed - decided in favor of appellant. Issues:1. Applicability of interest on delayed Cess payments under the Oil Industry (Development) Act, 1974.2. Interpretation of Section 15 of the OID Act, 1974 regarding duties of excise and application of Central Excise Act provisions.Analysis:1. The appeal concerned the demand for interest on delayed fortnightly Cess payments by the appellant, who produces Crude Oil and Natural Gas falling under CH 27 of the Central Excise Tariff Act. The lower authorities issued a letter demanding interest, relying on Rule 8(3) of Central Excise Rules, 2001/2002. The Commissioner (Appeals) upheld the demand, citing Section 15(4) of the OID Act, 1974, which refers to Cess as duties of excise, making Central Excise Act provisions applicable. The appellant argued that interest on Cess is not envisaged in the OID Act, referring to a Trade Notice and disputing the reliance on a previous case overruled by the Supreme Court.2. The Tribunal analyzed Section 15 of the OID Act, 1974, emphasizing that it designates Cess as duties of excise and incorporates Central Excise Act provisions. However, the Tribunal noted the absence of any provision in the OID Act for demanding interest on delayed Cess payments. Citing the Supreme Court case of India Carbon Ltd. and Others v. State of Assam, the Tribunal held that interest can only be levied if the taxing statute explicitly provides for it. The Tribunal concluded that since the OID Act does not include provisions for interest on Cess delays, the demand for interest by the lower authorities was unsustainable. Therefore, the appeal was allowed, and the order upholding interest payment was set aside.This detailed analysis highlights the key legal arguments, statutory provisions, and judicial interpretations that led to the Tribunal's decision to set aside the demand for interest on delayed Cess payments under the OID Act, 1974.
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