TaxTMI 
TaxTMI 
2024 (2) TMI 429
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....interest can be charged on delayed payment of oil cess under Section 11AB of the Central Excise Act, 1944. 2. Briefly stated facts of the case are that the Respondent, M/s. Geo- Enpro Petroleum Ltd. are engaged in the manufacturing of Crude Petroleum Oil falling under Tariff Heading 2709.00 of the Central Excise Tariff, 1985. On such crude oil, the Respondent was required to pay Oil Cess in accordance with Section 15(1) of the Oil Industry Development Act, 1974 ('OID Act'). Section 15(4) of the OID Act borrowed the provisions of Central Excise Act, 1944 and the Rules made thereunder including those relating to refunds and exemptions for the purpose of levy and collection of Oil Cess. Notification No. S.O .101(E) dated 01/02/1989 issued by ....
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....he OID Act does not provide for payment of interest. Therefore, in the absence of any substantive provisions requiring payment interest on delayed payment of Oil Cess, the demand of interest is not sustainable. Accordingly, they submitted for rejecting the department's appeal. 4. In their grounds of appeal, the Appellant department made the following submissions: (i) Section 15(4) of the OID Act authorizes the Central Excise officers to collect Cess as if it is Central Excise duty and all provisions of Central Excise Act, 1944 and Rules made there under are applicable for collection of this Cess. Since Cess is collected under Central Excise Act, 1944, the provisions of interest on delayed payment of Cess is rightly applicable. (ii) I....
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....od from April, 2002 to June, 2003. Which they were required to pay on a fortnightly basis. Show Cause Notices were issued and by Order-in-Original Nos. Div/Jor/Cex/Adj/10/04 and Div/Jor/Cex/Adj/11/2004, both dated 16-8-2004, the Assistant Commissioner, Central Excise Jorhat Division, confirmed the demand of interest amounting to Rs. 18,84,709/- and Rs. 12,80,248/- and also imposed personal penalty of Rs. 5000/- under Rule 8(4) read with Rule 27 of Central Excise Rule, 2002, in each order. 5. The First Appellate Authority allowed the appeal filed by the appellant-assessee. Being aggrieved, the appellant-Revenue is in appeal before the Tribunal. 6. The ld. AR appearing on behalf of the revenue reiterates the order of the Adjudicating Au....