Belated excise duty payment attracts mandatory interest under the rules even where Section 11AB does not apply.

Interest on belated excise duty payment was treated as mandatory under Rule 173G(1)(d) of the Central Excise Rules, 1944 and Rule 8 of the Central Excise Rules, 2001/2002, because those provisions were held to be self-contained. Section 11AB of the Central Excise Act, 1944 was held not to govern the demand where the assessee had itself computed duty late and paid the differential amount after the due date. The delay in payment therefore attracted interest under the applicable rules, and the objection based on Section 11AB was rejected.

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Issues: Whether interest was leviable on duty paid belatedly under Rule 173G(1)(d) of the Central Excise Rules, 1944 and Rule 8 of the Central Excise Rules, 2001/2002, and whether Section 11AB of the Central Excise Act, 1944 governed the demand.

Analysis: The interest provisions in Rule 173G(1)(d) and Rule 8 were held to be mandatory and self-contained. They did not depend on Section 11AB. On the facts, the assessee had itself worked out and paid duty late, resulting in a short payment and later payment of the differential amount beyond the due date. As the case did not involve the elements required for Section 11AB, that provision was held inapplicable, but the delay still attracted interest under the relevant excise rules.

Conclusion: Interest was leviable under the applicable rules, and the assessee's objection based on Section 11AB failed.

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