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2015 Supreme(Mad) 1692

R.SUDHAKAR, T.RAJA
V. T. Dyers & Screen Printers represented by its Proprietrix, Leela Thomas – Appellant
Versus
Union of India, represented by the Secretary, Ministry of Finance, New Delhi – Respondent


Advocate Appeared:
For the Petitioners:Jaikumar, K. Jayachandran, Advocates
For the Respondents:K. Mohanamurali, T. Chandrasekaran, Vikram Ramakrishnan, Haja Mohideen Gisthi, Advocates

JUDGMENT :

R. Sudhakar, J.

1. The above Writ Petitions are filed challenging Rule 8(3) of the Central Excise Rules as violative of Articles 14, 19(1)(g), 50 and 265 of the Constitution of India and also to set aside the consequent demand.

2. In all the above Writ Petitions, the issue that arise for consideration is whether interest is chargeable in terms of Rule 8(3) Central Excise Rules or under the provisions of Section 11AB of the Central Excise Act.

3. It is submitted by both the learned counsel appearing for the petitioners as well as the learned Standing Counsel appearing for the respondents that the issue involved in these Writ Petitions is covered by a decision of the Rajasthan High Court in the case of 2006 (200) E.L.T. 377 (Raj.) (Lucid Colloids Limited V. Union of India), wherein the Rajasthan High Court held that Rule 8(3) of the Central Excise Rules to the extent it provides levy of interest is ultravires to Section 11AB of the Central Excise Act and cannot be sustained.

4. Heard learned counsel appearing for the petitioners and the learned Standing Counsel appearing for the respondents.

5. In the case of 2006 (200) E.L.T. 377 (Raj.) (Lucid Colloids Limited V. Union of India











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