Interest on excise-related overtime charges applies where licence-linked fees remain unpaid beyond the prescribed period.

Interest under Section 38-A of the U.P. Excise Act, 1910 applies where excise revenue remains unpaid beyond the prescribed period, and the text treats overtime charges under Rule 12 as excise revenue because they were judicially characterised as a licence-related fee connected with the privilege of running the distillery. That prior characterisation was said to remain binding and not merely obiter, so the delayed overtime charges attracted statutory interest. On that basis, the demand notices were upheld.

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Issues: Whether interest under Section 38-A of the U.P. Excise Act, 1910 could be levied on delayed payment of overtime charges payable under Rule 12 of the Uttar Pradesh Excise (Establishment of Distilleries) Rules, and whether those overtime charges constituted excise revenue.

Analysis: Section 38-A applies where excise revenue remains unpaid beyond the prescribed period, and excise revenue includes revenue derived from a fee under Section 3(1) of the U.P. Excise Act, 1910. The overtime charges had already been judicially held to be a fee imposed as a condition of the licence and connected with the privilege to run the distillery. As that finding stood unreversed, the charges fell within the statutory concept of excise revenue. The contention that the earlier finding was merely obiter was rejected because the prior decision had expressly and definitively determined the character of the levy.

Conclusion: Interest under Section 38-A was held recoverable on the delayed overtime charges, and the demand notices were upheld.

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