Interest on delayed cess payment requires express statutory authority; absent that, the interest demand fails.

Interest on delayed payment of oil cess could not be levied under Section 11AB of the Central Excise Act, 1944 because Section 15(4) of the Oil Industry Development Act, 1974 only borrowed the excise machinery for collection and did not create an express substantive charging provision for interest. The Tribunal followed the prior decision on the same issue and upheld the setting aside of the interest demand.

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Issues: Whether interest is chargeable on delayed payment of oil cess under Section 11AB of the Central Excise Act, 1944 in view of Section 15(4) of the Oil Industry Development Act, 1974.

Analysis: The liability to pay oil cess had already been settled, but the question before the Tribunal was confined to interest on belated payment. The governing provision in the Oil Industry Development Act, 1974 was found to borrow the machinery of Central Excise law for collection of cess, yet it did not create any substantive liability to pay interest for delayed payment. Interest can be levied only when the charging statute expressly makes such a provision. The prior decision on the same issue, affirmed in further proceedings, was followed.

Conclusion: No interest was payable on delayed payment of oil cess under Section 11AB of the Central Excise Act, 1944, and the demand for interest was not sustainable.

Final Conclusion: The impugned order setting aside the interest demand was upheld, and the departmental challenge failed.

Ratio Decidendi: Interest on delayed payment of cess cannot be demanded unless the statute levying the cess contains an express substantive provision authorising such interest.

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