2007 (12) TMI 82

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....under Rule 8 of the Central Excise Rules, 2002 during the period of dispute. However, there happened to be delay in payment of duty for four calendar months in 2003-04. The lower authorities demanded interest on the amount of duty for the period of delay at the rate of Rs.1,000/- per day under Rule 8(3). The case of the appellants is that they are not liable to pay interest at this rate. Their cas....

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.... which provided for charging or interest at the rate of Rs.1,000/- per day is invalid and that consequently, interest chargeable on delayed payment has to be only at the rate of 2% per month. The Central Board of Excise and Customs, New Delhi, the Apex body of the respondent Department, has, in letter No.276/101/2005-CX. 8A, dated 16-2-2006, communicated the acceptance of the said Order of the Hon....