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2018 (7) TMI 154 - AT - Central ExciseDemand of interest on delayed payment of Education Cess - Held that - The identical issue has come up before the Tribunal in the case of Oil & Natural Gas Corpn. Ltd. Vs. Commr. of Central Excise & Customs, Visakhapatnam II 2009 (4) TMI 814 - CESTAT BANGALORE , where it was held that There is no provision in the Oil Industry (Development) Act, 1974, for demand of interest for delayed payment of Cess. The demand of interest is not sustainable - appeal allowed - decided in favor of appellant.
Issues:
- Appeal against Order-in-Appeal No.98/CE(A)/GHY/07 dated 11.10.2007. - Demand of interest on delayed payment of Education Cess on oil cess. Analysis: Issue 1: Appeal against Order-in-Appeal The appellant filed an appeal against Order-in-Appeal No.98/CE(A)/GHY/07 dated 11.10.2007 passed by the Commissioner (Appeals) of Central Excise, Customs, Guwahati. During the arguments, the appellant's advocate did not press any other grounds except the demand of interest on delayed payment of Education Cess levied on crude oil and oil cess paid by the appellant. Issue 2: Demand of Interest on Delayed Payment The Tribunal referred to a similar case involving Oil & Natural Gas Corporation Ltd. where it was observed that the law as settled by a previous decision was no longer valid. The Tribunal analyzed the provisions of Section 15 of the OID Act, 1974, which clearly talks about duties of excise and does not provide for the demand of interest for delayed payment of Cess. The Tribunal relied on a previous judgment (India Carbon Ltd. and Others v. State of Assam - AIR 1997 SC 3054) which held that interest can only be levied on delayed payment of tax if the statute specifically provides for it. Based on this analysis, the Tribunal concluded that the demand of interest was not sustainable. The issue regarding the demand of Education Cess levied on oil cess, which was paid by the appellant, was not challenged. Consequently, the impugned order was set aside, and the appeal was allowed regarding the interest demand. In conclusion, the Tribunal allowed the appeal filed by the appellant concerning the demand of interest on delayed payment of Education Cess, based on the analysis of relevant legal provisions and precedents.
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