Delayed self-assessed excise duty attracts statutory interest and penalty without separate show cause notice

Where self-assessed excise duty is admitted in ER-1 returns but paid late, interest and penalty arise as statutory consequences of delayed payment under Rule 8, and recovery may proceed under the Central Excise recovery framework without a separate show cause notice. The text states that Section 11A does not govern recovery of such admitted dues, because the matter is not one of disputed duty determination but of enforcing payment of acknowledged government dues. On that basis, the challenge to recovery on the ground of ing notice fails, and the statutory recovery action is sustained.

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Issues: Whether interest and penalty on delayed payment of self-assessed duty could be recovered under the Central Excise Rules and Section 11 of the Central Excise Act, 1944 without issuing a separate show cause notice, and whether Section 11A of the Central Excise Act, 1944 applied to such admitted dues.

Analysis: The duty liability had been admitted in the ER-1 returns and was paid belatedly. The governing scheme under Rule 8 required timely payment of duty and provided that delay attracted interest and penalty, while Rule 8(6) made Section 11 applicable for recovery of duty, interest, and penalty in the same manner as other sums due to the Government. Since the amount was not in dispute and had already been self-assessed and acknowledged by the appellant, the matter was one of recovery of admitted government dues rather than a determination under Section 11A. In such a situation, the absence of a further show cause notice did not vitiate the recovery action, and the demand could not be challenged on that footing.

Conclusion: The challenge failed. Recovery of interest and penalty without a separate show cause notice was upheld, and Section 11A was held inapplicable to the admitted belated payment.

Final Conclusion: The appeal was rejected because the appellant's admitted liability for delayed payment of duty carried consequential interest and penalty recoverable under the statutory recovery provisions.

Ratio Decidendi: Where duty has been self-assessed and admitted but paid belatedly, interest and penalty become recoverable as statutory consequences under the recovery provisions, and no separate show cause notice is required; Section 11A does not govern such admitted recovery proceedings.

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