TaxTMI 
TaxTMI 
2005 (1) TMI 126
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.... the excise authorities at Ahmedabad regarding payment of excise duty on the differential value of compressors. Pursuant to this dispute, a notice dated 17th November, 1987 was issued to the Petitioner calling upon them to show cause why excise duty of about Rs.1.95 crores be not recovered. 3.Feeling aggrieved by the show cause notice dated 17th November, 1987, the Petitioner filed SCA No.1758/1988 in the Gujarat High Court praying that the show cause notice be set aside. 4.During the pendency of the proceedings in the Gujarat High Court, the Collector of Central Excise adjudicated upon the show cause notice and raised a demand of excise duty for a sum of about Rs.1.55 crores for the period from November, 1982 to March, 1986. 5.By ....
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....umstances however,46. we reduce the penalty from Rs. 40 Lakhs to Rs. 20 Lakhs. The Tribunal while disposing of the stay application of the47. applicants on 13-12-1991, although observed that they have got no power to order the payment of interest, had accepted the offer of the learned Sr. Advocate for the appellants, for payment of interest by the appellants, at the rate of 12 percent in the event of their losing the appeal. We accordingly, exercising our inherent powers in view of the decision of the Hon'ble Supreme Court in the case of Income Tax Officer Cannanore v. M.K. Mohammed Kunhi reported in AIR 1969 SC 430, accept the offer of the learned Senior Advocate as to the payment of interest at the rate of 12 percent from the date of t....
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....epartment also to close all the pending inquiries under the raids conducted by them on ACCEL and not levy any additional liability on the company. xxx xx x" 12.On the basis of the Sanctioned Scheme, particularly taking advantage of the expression used therein that the Government of India will consider acceptance of the principal amount of excise duty carrying interest @ 12% per annum, the Respondents considered the matter and apparently relying upon Section 11BB of the Act, passed the impugned demand order dated 19th July, 1999 claiming interest at 17.5% compounded at the end of each month with effect from the date of confirmation of the demand and thereafter at 20% per annum for the period from 29th May, 1995. Reliance in this regard....
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....s which read as under :- "Department of Excise The representative of Excise Deptt. mentioned that the outstanding against the ACCEL was as under :- (Rs. in lakhs) Central Excise Duty 155.22 &nb....
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....nsel for the Petitioner had no objection at all to payment of interest. Indeed, he clearly stated that his client was prepared to pay interest as required by the Gujarat High Court. The issue, therefore, is really about the rate of interest. 17.We are of the view that on the facts of this case, the Respondents cannot demand any interest over 12% per annum. The Gujarat High Court while entertaining the writ petition filed by the Petitioner had clearly indicated that in case the Petitioner does not succeed in the writ petition, it will have to pay interest @ 12% per annum. This was accepted by the Respondents. The Respondents did not, at any point of time, demand any higher rate of interest than 12% per annum. 18.When the Petitioner app....