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TMI Blog2014 (4) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest shall apply and not the rate of interest which was prevalent when the amount of duty was due - Otherwise, the entire rule becomes infructuous/otiose - interest leviable for the period from 1.4.2003 to 2.9.2003 would be at the rate prescribed in the amended provisions of sub-rule (3) of Rule 8 of the Central Excise Rules, 2002 - Decided in favour of Revenue. - APPEAL NO. E/3713/04 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15.4.2003 for the month of March, 2003. However, the payment of duty was made only on 2.9.2003; hence there was a delay of 169 days and 148 days respectively in payment of the duty for the months of February and March, 2003 respectively. The rate of interest underwent change vide Central Excise (Second Amendment) Rules, 2003, which came into force from 1.4.2003. As per the amended rule, the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icating authority and held that the rate of interest applicable will be that prevailing on the date when the duty was required to be paid. Aggrieved of the same, the Revenue is before us. 3. The learned Addl. Commissioner (AR) appearing for the Revenue submits that when the rules were amended and new rates of interest were prescribed effective form 1.4.2003, it is the new interest rate that sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is higher, subject to the cap of the amount of duty outstanding. Once the amended rules have come into force, they have to be given full effect and, therefore, for the period from 1.4.2003, the new rate of interest shall apply and not the rate of interest which was prevalent when the amount duty was due. Otherwise, the entire rule becomes infructuous/otiose. It is a settled position in law that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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