Rule 8(3) Ultra Vires to 11AB(1) of Central Excise Act: Punjab & Haryana HC Allows Refund of Excessive Interest

The Punjab & Haryana High Court ruled that Rule 8(3) of the Central Excise Act is ultra vires to Section 11AB(1) and allowed the refund of excessive interest charged. The court found that the interest levied under Rule 8(3) was beyond the legal provisions set by Section 11AB(1). This decision underscores the importance of adhering to statutory limits and provides relief to taxpayers from unjust interest charges. The ruling ensures that taxpayers are not subjected to excessive financial burdens due to misinterpretation of the law.