Excise duty instalments without permission can attract interest; refund of interest paid under protest fails on these facts.

Interest was recoverable on excise duty paid in instalments without permission where the delay was attributable to the assessee. The duty demand had been confirmed, but the assessee chose to clear it in 30 instalments instead of making a lump-sum payment, and interest at 17.5% was demanded under the relevant CBEC circular. A relied-on precedent was distinguished because instalment payment there had been permitted without an interest condition, unlike the present facts. On that basis, the interest demand was treated as justified and the refund claim for interest paid under protest was held not maintainable.

---

---

Issues: Whether interest was payable on excise duty deposited in instalments without permission and whether the refund claim of the interest paid under protest was liable to be rejected.

Analysis: The duty demand for the relevant period had been confirmed, and the assessee chose to discharge the liability in 30 instalments on its own instead of making lump-sum payment. Interest at 17.5% on the delayed payment was demanded under the Central Board of Excise and Customs Circular No. 182/85 (Misc. 44/85). The decision relied upon by the assessee was held inapplicable because, in that case, instalment payment had been permitted without any interest condition, whereas here the delay was caused by the assessee without such permission. On these facts, the demand of interest was treated as justified and no infirmity was found in the rejection of refund.

Conclusion: Interest on the delayed payment of duty was rightly demanded and the refund claim was not maintainable.

Ratio Decidendi: Where excise duty is paid in instalments without permission and delay is attributable to the assessee, interest may be validly recovered and a refund claim against such recovery fails.

---