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TMI Blog2011 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... artmental Notification No.39/2000 dated 12th May, 2000 and the provisions of Section 11AA of the Central Excise Act, 1944 – Petition disposed off - W.P. (C) NO. 8798/2004 - - - Dated:- 15-3-2011 - HON BLE MR JUSTICE HRISHIKESH ROY For the Petitioner: Mr. G N Sahewalla, Sr. Advocate Mr. P Bora, Advocate, Mr. MD Aslam, Advocate Mr. D Senapati, Advocate. For the Respondents: Mr. B Sarma, Sr. Advocate. JUDGMENT AND ORDER (ORAL) 1. Heard Mr. GN Sahewalla, learned senior counsel appearing for the petitioner. Also heard Mr. B Sarma, learned senior standing counsel for the Central Excise Department representing the respondents. 2. The petitioner‟s Factory is registered with the Central Excise Department as a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g for the petitioner it is submitted by Mr. Sahewalla that the petitioner does not dispute its liability to pay additional excise duty on manufacture of tea by virtue of Section 157 of the 2003 Act. However the learned counsel contends that the interest on delayed payment charged at the rate of Rs. 1000/- per day is impermissible, in view of the notification dated 12th May, 2000 issued under Section 11AA of the Central Excise Act, 1944. 5. Mr. B Sarma, the learned standing counsel by referring to the decision of Division Bench of this Court rendered on 30th June, 2005 in a batch of Writ Appeal including the Writ Appeal No.55/2005 (Union of India vs. Assam Brook Ltd.) submits that the liability of the petitioner to pay additional excise du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Government hereby fixes the rate of interest at twenty-four per cent per annum for the purposes of the said section . 7. The rate of chargeable interest is specified by the notification dated 12th May, 2000 for delayed payment and interest beyond 24% cannot be recovered under Section 11A. Furthermore, the interest is chargeable under Section 11AA only if the assessee fails to pay duty, within 3 months from the date of determination . Therefore, while deciding on the amount of interest payable for delay in duty payment, the adjudicating authority is required to firstly take into account as to when, the payable duty was determined and secondly the rigours of the C.E. Notification No.39/2000 as interest cannot exceed 24% per annu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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