TaxTMI 
TaxTMI 
2000 (12) TMI 108
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....e petitioner filed reply dated 10-12-1973 questioning its liability to pay the cess. After some correspondence on the issue, it filed C.W.P. No. 1174 of 1974 for quashing of the demand of cess. Other manufacturers of vegetable oil also filed writ petitions challenging the levy or cess under the 1966 Act. All such petitions were dismissed by a Division Bench of the Court on 29-11-1978 - Dhanpat Oil and General Mills v. Union of India and Others. [I.L.R. (1979) 2 Punjab and Haryana 321]. The petitioner challenged the order of the High Court in S.L.P. No. 3271 of 1979, which was later on converted into Civil Appeal No. 2143 of 1979. While issuing notice of the S.L.P. on 4-5-1979, the Supreme Court stayed realisation of the amount of cess in dispute subject to furnishing of bank guarantee by the petitioner. The appeals filed by other manufacturers of vegetable oil were dismissed by the Supreme Court vide judgment dated 8-7-1985 M/s. Dhanpat Oil & General Mills v. Union of India and Others, [1985 (21) E.L.T. 636 (S.C.) = AIR 1985 Supreme Court 1255]. However, the appeal filed by the petitioner remained pending for another two years and over six months and the same was ultimately dismiss....
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....nd the mere fact that during the pendency of the proceedings before the High Court and the Supreme Court, it had avoided its liability to pay the amount of cess, they cannot be deprived their right to recover interest on the amount which could not be collected due to the stay orders passed by the High Court and the Supreme Court. 6.Shri R.L. Batta, Senior Advocate, counsel for the petitioner, argued that the levy of interest on the arrears of cess could be declared ultra vires to Section 11AA of the 1944 Act because the provisions of that section have not been engrafted in the provisions of 1966 Act and the 1983 Act. Learned counsel referred to Section 15 of the 1966 Act and Section 3 of the 1983 Act, and argued that the provisions of Section 11AA of the 1944 Act cannot be held applicable to the recoveries sought to be made under those enactments because after 26-5-1995, i.e. the date with effect from which Section 11AA was inserted in the 1944 Act, no corresponding amendment had not been made in the 1966 Act and the 1983 Act. Learned Counsel then argued that in the absence of a statutory provision entitling the respondents to charge interest on the arrears of cess, the responde....
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....de payment of duty, by such person or his agent, the provisions of this sub-section shall have effect, as if for the words "one year" the words "five years" were substituted : Provided further that where the amount of duty which has not been levied or paid or has been short-levied or short paid or erroneously refunded is one crore of rupees or less a notice under this sub-section shall be served by the Commissioner of Central Excise or with his prior approval by any officer subordinate to him : Provided also that where the amount of duty which has not been levied or paid or has been short-levied or short-paid or erroneously refunded is more than one crore rupees, no notice under this sub-section shall be served without the prior approval of the Chief Commissioner of Central Excise. Explanation. - Where the service of notice is stayed by an order of a court, the period of such stay shall be excluded in computing the aforesaid period of one year or five years, as the case may be. Central Excise(2) Officer shall, after considering the representation, if any, made by the person on whom notice is served under sub-section (1), determine the amount of duty of excise due from s....
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....he duty is so determined; (b) for the amount of increased duty, the date of order by which the increased amount of duty is first determined to be payable; (c) for the amount of further increase of duty, the date of order on which the duty is so further increased. xxx xxxxxx The 1966 Act "Provisions of certain Acts to apply. - xx xx xx The(2) provisions of the Central Excises and Salt Act, 1944, and the rules made thereunder, including those relating to refunds and exemptions from duty, shall, so far as may be, apply in relation to the levy and collection of duties of excise on any produce specified in the Second Schedule as they apply in relation to the levy and collection of duty payable to the Central Government under that Act." xxx xxxxxx The 1983 Act "Levy and3....
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....ion in 1979) on the additional sales tax from the date on which the original returns were filed but interest had to be paid only for the period subsequent to determination of sales tax. Their Lordships further held as under :- "Ordinarily the charging section which fixes the liability is strictly construed but that rule of strict construction is not extended to the machinery provisions which are construed like any other statute. The machinery provisions must, no doubt, be so construed as would effectuate the object and purpose of the statute and not defeat the same. But any provision made in a statute for charging or levying interest on delayed payment of tax must be construed as a substantive law and not adjectival law." 11.In India Carbon Ltd. v. State of Assam (supra), their Lordships of the Supreme Court interpreted Section 35A of the Assam Sales Tax Act, 1947, and Section 9(2A) of the Central Sales Tax Act, 1956, and held as under :- "Interest can be levied and charged on delayed payment of tax only if the statute that levies and charges the tax makes a substantive provision in this behalf." xxx xxx &....