2014 (6) TMI 236

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..... had to be only at the rate of 2% per month or for that matter 24% per annum as notified by the State Government in terms of the Section 11BC, which is between the permissible limits in ‘terms of Section 11AB. Consequently, the demand notices are quashed and interest on delayed payment has to be recomputed - Following decision of Lucid Colloids Ltd. Vs. Union of India [2005 (8) TMI 134 - HIGH COUR .....

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..... under Rule 8 of the said Rules. Subsequently, the respondents paid the duty along with interest under Section 11AB of the Central Excise Act, 1944. Show-cause notice dated 22.12.2003 was issued proposing to pay interest of Rs.48,254/- under Rule 8 of the said Rules [interest @ Rs.1,000/- per day subject to a maximum of the defaulted amount of Rs.48,254/-] and imposed penalty. The Hon ble Rajastha .....

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..... 4. In view of the above decision of the Hon ble Rajasthan High Court, the demand of interest @ Rs.1,000/- per day is not sustainable. Accordingly, we do not find any infirmity in the order passed by the Commissioner (Appeals) and it is upheld. The appeal filed by the Revenue is dismissed. The cross-objection filed by the respondents also gets disposed of. (Dictated and pronounced in open .....

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