.1. Two principal prayers have been made in the writ petition relating to challenge the vires of Rule 8(3) of the Central Excise Rules, 2002 as under:-

.(i) The impugned provision and particularly phrase Rs. 1,000/-per day or whichever is higher of Rule 8(3) of Central Excise Rules, 2002 may be declared ultra vires Section 11-AB of the Central Excise Act, 1944?

.(ii) The offending phrase “Rs. 1,000/-per day or whichever is higher may be declared arbitrary, confiscatory and violative of Articles 19(1)(g) and 265 of the Constitution of India.

2. Consequential relief is for setting aside the demand founded on the aforesaid rule to the extent it levied interest @ Rs. 1, 0000/-per day.

3. The provision in the parent Act which authorises charge of interest on delayed payment of duty

reads as under:-Section 11-AB Interest on delayed payment of duty:-Where any duty of excise has not been levied or paid or has been short levied or short-paid or erroneously refunded, the person who is liable to pay the duty as determined under Sub-section (2), or has paid the duty under Sub-section (2-B) of Section 11-A, shall, in addition to the duty, be liable to pay interest at such rate not below