9911796707
TMI Blog2011 (3) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- which is higher as alternative to charge of interest @ 2% on the amount of duty means to be understood as 24% p.a. on the amount of duty in default is ultra vires to Section 11AB of the Act and cannot be sustained and is held inoperative. Apparently, the authority below was not justified in confirming the demand of interest @ Rs. 1,000/- per day for the relevant period. Thus matter is remanded to the Commissioner to recalculate the interest bearing in mind the law applicable to the facts of the case and the decision of the Rajasthan High Court. As regards the penalty is concerned there is no finding either by the authority below to the effect that the delay in payment of duty was with intention to evade the duty. In the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Rules, 2002 inasmuch as that the appellants had been paying full rate of duty on the goods cleared by them without availing benefit of exemption notification during the period from April 2004 to December 2004. The appellants had crossed the small scale exemption limit of Rs. 3 crores during the financial year 2003-04 and, therefore, they had become ineligible for taking benefit of the notification granting exemption based on value of clearances for home consumption by SSI units during the financial year 2004-05. Scrutiny of ER-1 returns for the said period revealed that the appellants availed the facility of filing ER-1 return on quarterly basis which is in contravention of the provisions of Rule 12 of the said Rules. The appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sthan High Court in Lucid Colloids case had clearly held that to the extent rule provides other than the rate of interest as an alternative mode of levy of interest per day not connected with the amount of duty in default is beyond the enabling power of the Parent Act and has further held that Rule 8(3) to the extent it provides levy of interest @ Rs. 1,000/- which is higher as alternative to charge of interest @ 2% on the amount of duty means to be understood as 24% per annum on the amount of duty in default is ultra vires to Section 11AB of the Act and cannot be sustained and is held inoperative . Apparently, the authority below was not justified in confirming the demand of interest @ Rs. 1,000/- per day for the relevant period. Undispute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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