2009 (6) TMI 800 - AT - Central Excise

Summary

Issues Involved:
Interpretation of provisions of the Sugar Export Promotion Act, 1958 regarding the levy and collection of Additional Excise Duty, specifically in relation to interest payment and penalty imposition.

Summary:

Issue 1: Interest Payment on Delayed Cess Payment
The case involved a dispute regarding the confirmation of interest on delayed payment of Cess under the Sugar Export Promotion Act, 1958. The original adjudicating authority confirmed the interest under Section 11AB of the Central Excise Act, 1944, while the Commissioner (Appeals) upheld the interest but set aside the penalty imposed. The appellant argued that the Act of 1958 did not specifically mention interest provisions, and therefore interest should not be confirmed. The appellant relied on legal precedents to support the argument that interest provisions must be explicitly provided for. The JDR, however, contended that interest under Section 11AB is applicable for delayed payment of duty, irrespective of reasons for delay. The Tribunal analyzed the provisions of the Act and relevant legal precedents, ultimately agreeing with the appellant that interest confirmation was unjust and set it aside, allowing the appeal.

Issue 2: Application of Central Excise Provisions
The Tribunal compared the provisions of the Sugar Export Promotion Act, 1958 with the Additional Duties of Excise (Goods of Special Importance) Act, 1957, which had similar language regarding the application of Central Excise provisions. Legal precedents were cited to argue that penal provisions must be explicitly provided for in the Act itself. The Tribunal concluded that since the Act of 1958 contained specific penalty provisions but lacked explicit interest provisions, confirming interest under Section 11AB was not justified. The Tribunal held that the Act did not provide the necessary jurisdiction or authority for interest confirmation, and therefore set aside the interest payment.

Conclusion:
The Tribunal ruled in favor of the appellant, setting aside the confirmation of interest on delayed Cess payment under the Sugar Export Promotion Act, 1958. The decision was based on the lack of explicit provisions in the Act for interest payment, as well as the presence of specific penalty provisions without corresponding interest provisions. The appeal was allowed, and the interest confirmation was deemed unjust and uncalled for.