The Hindu Business Line : Surcharge for disaster management upheld

Chennai, Feb. 5 Levy of surcharge on certain goods under Central excise tariff introduced by Finance Act 2001 to meet liability for disaster management has been upheld by the Madurai Bench of Madras High Court.

Dismissing a writ by ARR Enterprises, Kumbakonam, Tamil Nadu, challenging levy along with interest, Mr. Justice K. Chandru ruled that the additional duty levied under Finance Act and interest were within the jurisdiction of the Central Act.

According to petitioner, interest was not leviable as calculation of duty was under held National Calamity Contingent Duty, and it only borrowed machinery under Central Excise Act.

Hence, all provisions of that Act would not apply particularly one which enabled the Dept to charge interest.

The petitioner, having failed to pay duty, together with penalty, could not be subjected to further calculation unless a substantive provision was made to pay interest under the Act.

Also, petitioner further contended, charging or payment of interest authorised sales tax authorities of a State to collect Central tax as if it was payable under State Act.

More Stories on : Courts/Legal Issues | Excise and Customs | Tamil Nadu

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