https://www.taxtmi.com/caselaws?id=263481 A delegated rule on interest under the Central Excise framework must remain within the parent statute and compute liability by reference to the duty in default and the period of default. A fixed daily levy of Rs. 1,000, offered as an alternative to interest at 2% per month, was treated as changing the levy from compensatory interest into a penal exaction. The Madras HC held that the rule-making power did not authorise such a charge, so the impugned portion of Rule 8(3) was ultra vires and unenforceable. The invalid part was severable, and the demand to that extent was set aside. en-us Fri, 27 Mar 2015 00:00:00 +0530 Wed, 07 Oct 2015 09:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=263481 A delegated rule on interest under the Central Excise framework must remain within the parent statute and compute liability by reference to the duty in default and the period of default. A fixed daily levy of Rs. 1,000, offered as an alternative to interest at 2% per month, was treated as changing the levy from compensatory interest into a penal exaction. The Madras HC held that the rule-making power did not authorise such a charge, so the impugned portion of Rule 8(3) was ultra vires and unenforceable. The invalid part was severable, and the demand to that extent was set aside. Case-Laws Central Excise Fri, 27 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=263481