https://www.taxtmi.com/caselaws?id=328253 Penal interest on excise dues was treated as payable only when the liability became legally recoverable under a valid demand. A demand earlier quashed by the High Court was regarded as having no legal existence and could not support interest for that period, even though the liability was later restored by the Supreme Court. The Supreme Court's reversal revived the State's right to raise a fresh demand, but it did not automatically revive the quashed demand for interest purposes. Because the amount was paid within the stipulated time after the fresh demand, no penal interest was leviable and the interest demand was set aside. en-us Fri, 27 May 2016 00:00:00 +0530 Tue, 31 May 2016 10:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328253 Penal interest on excise dues was treated as payable only when the liability became legally recoverable under a valid demand. A demand earlier quashed by the High Court was regarded as having no legal existence and could not support interest for that period, even though the liability was later restored by the Supreme Court. The Supreme Court's reversal revived the State's right to raise a fresh demand, but it did not automatically revive the quashed demand for interest purposes. Because the amount was paid within the stipulated time after the fresh demand, no penal interest was leviable and the interest demand was set aside. Case-Laws Indian Laws Fri, 27 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328253