I am directed to refer to Board�s instructions contained in F.No. 289/10/91-CX.9 dated 18.3.91 under which powers have been delegated to the Principal Collectors of Central Excise to grant, in individual cases, the facility of payment of Central Excise dues in upto 12 instalments on merits. It has inter-alia, stated that simple interest at 17.5% compounded at the end of each month would be chargeable from the date of confirmation of the demands.

2.     Instances have come to the notice of the Board where collection of interest on payment of dues in instalments has become a matter of dispute between the assessees and the Department. In certain cases the assessees have even gone to the Courts. The Board has also received requests from some assessees for waiver of interest in such cases.

3.     The matter has been examined by the Board. It is clarified that the interest on the principal amount should continue to be recovered from the assessees in the manner outlined in Board�s instructions contained in F.No. 289.10/91-CX.9 dated 18.3.91 unless there is a clear stay order from the Court.