Statutory authority for interest on excise duty delay was absent, so the interest demand failed.

Interest could not be levied on delayed payment of additional duty of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 where the statute contained no express authorisation for such levy. The Tribunal noted that the revenue's reliance on an earlier High Court order was misplaced because the appellant's writ petition in the present matter had only been withdrawn and was not dismissed on merits. In the absence of statutory power to charge interest at the relevant time, the demand was held unsustainable.

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Issues: Whether interest could be demanded for delayed payment of additional duty of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 in the absence of any statutory provision authorising such levy.

Analysis: The dispute turned on whether the revenue could rely on an earlier High Court order in another matter to sustain the demand of interest. The appellant's writ petition had only been withdrawn and was not dismissed on merits, unlike the case relied upon by the revenue. The Tribunal accepted that, at the relevant time, the statute contained no provision authorising levy of interest, and in the absence of such statutory authority interest could not be imposed.

Conclusion: The demand for interest was not sustainable and the appeal succeeded.

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