Interest on statutory cess requires express enabling provision in the parent enactment; incorporated excise rules alone cannot create liability.

Interest on delayed payment of cess under the Oil Industry (Development) Act, 1974 was held not leviable because the parent Act contained no substantive provision authorising interest. Although Section 15 treats the cess as a duty of excise and incorporates the Central Excise Act, 1944 and the rules for levy and collection only so far as may be, that procedural incorporation did not by itself create a liability to interest. A provision in the Central Excise Act or Rules could not sustain an interest demand in the absence of express authority in the cess-enacting statute, and the demand was therefore unsustainable.

---

---

Issues: Whether interest can be levied on delayed payment of cess payable under the Oil Industry (Development) Act, 1974.

Analysis: The charging provision under Section 15 of the Oil Industry (Development) Act, 1974 treats the levy as a duty of excise and applies the Central Excise Act, 1944 and the rules made thereunder for levy and collection only so far as may be. The Act itself contains no substantive provision authorising interest for delayed payment of cess. A provision in the Central Excise Rules, 2001/2002 or in the Central Excise Act, 1944 cannot by itself create liability to interest unless the parent statute levying the duty makes such liability expressly payable. The demand was therefore unsupported by the governing statute.

Conclusion: Interest was not leviable on delayed payment of cess under the Oil Industry (Development) Act, 1974, and the demand could not be sustained.

Final Conclusion: The order confirming interest on the delayed cess payments was set aside, and the appellant obtained relief.

Ratio Decidendi: Interest on a statutory levy can be charged only when the enactment imposing the levy contains a substantive provision authorising such interest; procedural incorporation of another Act does not by itself create that liability.

---