Interest on delayed cess demands require express statutory authority; Central Excise provisions cannot be invoked without it.

Interest on delayed payment of cess is leviable only where the charging statute itself contains a substantive enabling provision. The Oil Industry (Development) Act, 1974 makes the Central Excise Act, 1944 and its rules applicable for levy and collection, but it does not independently authorise interest for delayed payment of cess. As a result, sections 11AA and 11AB of the Central Excise Act, 1944 cannot be invoked to demand interest in the absence of a corresponding provision in the parent cess statute. The issue was therefore decided in favour of the assessee.

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Issues: Whether interest could be demanded on delayed payment of cess under the Oil Industry (Development) Act, 1974 by invoking the Central Excise Act, 1944 and the rules made thereunder.

Analysis: The applicable statutory scheme under section 15(4) of the Oil Industry (Development) Act, 1974 makes the Central Excise Act, 1944 and the rules made thereunder applicable for levy and collection, but does not itself contain any substantive provision authorising levy of interest for delayed payment of cess. Interest on delayed payment of tax or cess can be levied only when the charging statute expressly provides for it. The cited Tribunal and High Court decisions applied this principle and held that sections 11AA and 11AB of the Central Excise Act, 1944 could not be invoked in the absence of a corresponding provision in the Oil Industry (Development) Act, 1974.

Conclusion: Interest on delayed payment of cess under the Oil Industry (Development) Act, 1974 could not be demanded under the Central Excise Act, 1944 or the rules made thereunder; the issue was decided in favour of the assessee.

Ratio Decidendi: Interest on delayed payment of tax or cess is leviable only if the charging statute itself contains a substantive enabling provision.

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