AI Structured Summary
Not yet generated for this judgment
Judgment
Goda Raghuram, J.—This appeal by the Revenue u/s 35(G) of the Customs Act, 1962 is directed against the order of the CESTAT, South Zonal Bench, Bangalore dated 31-12-2007 in Appeal No. Excise 927/2005 [2008 (224) E.L.T. 429 (Tri.-Bang.)]. The CESTAT rejected the appeal by the Revenue and confirmed the order-in-Appeal dated 20-5-2005 passed by the Commissioner of Customs and Central Excise Appeals-III. The facts in brief are that the respondent-assessee defaulted on three occasions in payment of duty due to the exchequer in the month of June and July, 2002 and eventually paid the amount in December, 2003, January, 2004, February, 2004 and March, 2004 along with interest of Rs. 64,17,534/- at the rate of 15% in terms of Rule 8(3) of the Central Excise Rules, 2002 read with Notification No. 19/2002-C.E., dated 13-5-2002.
The Revenue however proceeded against the assessee on the ground that after 1-3-2003, by Notification No. 12/2003, dated 1-3-2003 the rate of interest was enhanced to 24% per annum instead of the earlier 15% and with effect from 1-4-2003. The Commissioner (Appeals) and the CESTAT held that the rate of interest prevailing as on the date of default will be taken and that the new rate introduced by the amendment to Rule issued vide the Notification No. 12/2003 dated 1-3-2003 and with effect from 1-4-2003 will be applicable to the defaults which occurred after 1-4-2003. We concur with the concurrent findings on this aspect.
We find no error of law in the reasoning concurrently arrived at by the Commissioner (Appeals) and the CESTAT warranting consideration of this appeal, since no substantial question of law arises for consideration. This appeal is accordingly dismissed at the stage of admission. No costs.