2005 (5) TMI 147

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.... the dropping of interest on a differential amount of duty paid belatedly by the respondents. The respondents, during the material period, were availing the facility of fortnightly payment of duty under Rule 173G of the Central Excise Rules, 1944/Rule 8 of the Central Excise Rules, 2001/Rule 8 of the Central Excise Rules, 2002. As per Rule 173G(1)(d), if the manufacturer failed to pay the amount o....

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....ondents. The original authority demanded an amount of Rs. 3,62,980/- towards interest on duty for this delay under Rule 173G(1)(d) of CER, 1944/Rule 8 of CER, 2001/Rule 8 of CER, 2002 and Section 11AB of Central Excise Act, 1944. The first appellate authority vacated this demand, holding that as the outstanding amount of duty was paid prior to issuance of the show cause notice, no interest was lev....

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.... applicable in this case is not Section 11AB. Referring to the grounds of appeal, ld. DR submits that the appellant's case squarely falls within the scope of Rule 173G(1)(d) or Rule 8 of CER, 2001 or Rule 8 of CER, 2002 as the case may be. His argument is that, under any of these provisions, interest on duty paid belatedly is mandatory. 3. After giving careful consideration to the submissions, ....

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....e and in the orders passed by the lower authorities. The question now is whether Rule 173G(1)(d) and, for that matter, Rule 8 are invocable in this case for levy of interest. I have already found that these provisions are mandatory. The demand for interest under these provisions is irresistible. 4. Today ld. Counsel has placed on record a catena of decisions, all of which are to the effect that....