Interest on delayed cess requires express statutory authority; implication alone cannot create liability.

The Gauhati HC held that interest on delayed payment of cess cannot be levied unless the taxing statute contains an express substantive provision authorising such a charge. Section 15(4) of the Oil Industry (Development) Act, 1974 merely applies Central Excise law and rules to levy and collection "as far as may be" and does not by itself create a liability to pay interest. In the absence of a specific statutory provision for interest on delayed cess payment, the levy was unsustainable, and the challenge to the dismissal of the departmental appeal was rejected.

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Issues: Whether interest could be levied on delayed payment of cess in the absence of an express substantive provision under the Oil Industry (Development) Act, 1974.

Analysis: Section 15(4) only applies the Central Excise law and rules, as far as may be, to the levy and collection of duties of excise under that section. It does not itself create a substantive liability to pay interest. In the absence of a specific statutory provision imposing interest for delayed payment of cess, interest cannot be charged merely by implication.

Conclusion: The levy of interest was not sustainable and the appeal failed on this issue, in favour of the respondent.

Final Conclusion: The challenge to the order dismissing the departmental appeal was rejected, as the statutory framework did not authorise interest on delayed payment of cess without an express provision.

Ratio Decidendi: Interest for delayed payment can be imposed only when the taxing statute contains an express substantive provision authorising such levy.

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