2013 (12) TMI 396

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....t, 1974. Both the Lower Authorities have held that the appellant herein is liable to pay the interest for the delayed payment of such cess under the provisions of section of 11 (a) (b) of the Central Excise Act, 1944. 4. Ld. Counsel would bring to my notice that the judgment of the tribunal in the case of ONGC Ltd. [2010 252 ELT 123 (Tri. Bangalore)] is directly on the issue for the delay of payment of cess, interest cannot be charged under provision of Central Excise Act and Rules made there under. He would also submit that the Hon'ble High Court of Andhra Pradesh, in an unreported judgment in a writ petition No. 1257 of 2005 was also considering in an identical issue and wherein their Lordships have held that interest cannot be demanded ....

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.... Section 9(2) authorizes the sales tax authorities of a State to assess, reassess, collect and enforce payment of the central sales tax payable by a dealer as if it was payable under the State Act; this is the first part of Section 9(2). By the second part thereof, these authorities are empowered to exercise the powers they have under the State Act and the provisions of the State Act, including provisions relating to charging and payment of interest, apply accordingly. Having regard to what has been said in the case of Khemka & Co., it must be held that the substantive law that the States' sales tax authorities must apply is the Central Act. In such application, for procedural purposes alone, the provisions of the State Act are available. T....

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.... of the OID Act do not contain any provision for levy of interest on delayed payments of cess, the respondents are not entitled to demand that the petitioner pays interest on the alleged delayed payments of cess.    "35. We are also in complete agreement with the decision in Devi Dass Gopal Krishna's case (3 supra) that when the OID Act was enacted by the Parliament, the Central Excise and Salt Act (now known as the Central Excise Act, 1944) was in force, that instead of separately incorporating the provisions relating to levy and recovery of duty under the 1944 Act and the rules made thereunder, including those relating to the refund and exemption from duty, the provisions of the 1944 Act were made applicable for levy and collec....