9911796707
TMI Blog2005 (1) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... excise authorities at Ahmedabad regarding payment of excise duty on the differential value of compressors. Pursuant to this dispute, a notice dated 17th November, 1987 was issued to the Petitioner calling upon them to show cause why excise duty of about Rs.1.95 crores be not recovered. 3.Feeling aggrieved by the show cause notice dated 17th November, 1987, the Petitioner filed SCA No.1758/1988 in the Gujarat High Court praying that the show cause notice be set aside. 4.During the pendency of the proceedings in the Gujarat High Court, the Collector of Central Excise adjudicated upon the show cause notice and raised a demand of excise duty for a sum of about Rs.1.55 crores for the period from November, 1982 to March, 1986. 5.By an order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. we reduce the penalty from Rs. 40 Lakhs to Rs. 20 Lakhs. The Tribunal while disposing of the stay application of the47. applicants on 13-12-1991, although observed that they have got no power to order the payment of interest, had accepted the offer of the learned Sr. Advocate for the appellants, for payment of interest by the appellants, at the rate of 12 percent in the event of their losing the appeal. We accordingly, exercising our inherent powers in view of the decision of the Hon'ble Supreme Court in the case of Income Tax Officer Cannanore v. M.K. Mohammed Kunhi reported in AIR 1969 SC 430, accept the offer of the learned Senior Advocate as to the payment of interest at the rate of 12 percent from the date of the order dated 21-2-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing inquiries under the raids conducted by them on ACCEL and not levy any additional liability on the company. xxx xx x" 12.On the basis of the Sanctioned Scheme, particularly taking advantage of the expression used therein that the Government of India will consider acceptance of the principal amount of excise duty carrying interest @ 12% per annum, the Respondents considered the matter and apparently relying upon Section 11BB of the Act, passed the impugned demand order dated 19th July, 1999 claiming interest at 17.5% compounded at the end of each month with effect from the date of confirmation of the demand and thereafter at 20% per annum for the period from 29th May, 1995. Reliance in this regard was placed upon certain notifications i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise The representative of Excise Deptt. mentioned that the outstanding against the ACCEL was as under :- (Rs. in lakhs) Central Excise Duty 155.22 Penalty 20.00 Moreover further interest was payable on Central Excise Duty @ 12% from 21-2-1990 till the date of payment. He also mentioned that there was no provision of waiver/reduction of Central Excise duty/penalties/interest under Central Excise Act." 15.On the other hand, learned counsel for the Respondents contended that there was no obligation on the Respondents to accept interest @ 12% per annum and as per the Sanctioned Scheme the Respondents were only required to consider acceptance of interest @ 12% per annum. Therefore, after looking into the matter, it was decided that int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnum, relying upon the view expressed by the Gujarat High Court. This was also not challenged by the Respondents at any stage. In view of the fact that two authorities have determined the liability of the Petitioner to pay interest @ 12% per annum, we do not think it appropriate to permit the Respondents to charge a higher rate of interest particularly when there has been no protest from them in this regard. 19.Even while the Sanctioned Scheme was under discussion with IFCI as the operating agency, the rate of interest that was agreed, as mentioned in the minutes of the proceedings held on 1st September, 1998 indicates that only 12% interest was to be charged from the Petitioner from 21st February, 1990 onwards. It is true that when the sc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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