AFT Tobacco Pvt. Ltd Vs Commissioner, Central Goods & Service Tax and Central Excise (CESTAT Delhi)
CESTAT held that interest is payable for default in depositing the tax by the due date voluntarily or after determination of the amount of duty under Section 11A of Central Excise Act, 1944. Here both the conditions are not available to Revenue as admittedly neither there is any determination of duty liability of NCCD under Section 11A, nor there is voluntary default in deposit of the amount of NCCD. In absence of condition precedent in Section 11AA of the Act, I hold that no interest can be demanded from the appellant – I further take judicial notice that the appellant was prevented from deposit of dues, due to glitch on the portal, which is wholly attributable to inaction on the part of Revenue. Thus, Revenue cannot take advantage of its wrong doing, by levy of interest.
FULL TEXT OF THE CESTAT DELHI ORDER
This appeal has been filed against Order-in-appeal confirming the demand of interest on late payment of National Calamity Contingent Duty (NCCD) for the period July, 2017 to July, 2019 in respect of Unit-I and August, 2017 to July, 2019 for Unit-II.
2. The brief facts of the case are that the appellant set up two units as follows:-
