Power to reduce or waive interest in certain cases

(2) In the event of default in payment of excise revenue or otherwise, by any persc licensed under this Act, his manufactory, warehouse, shop or premises and all fittings, apparatus, stocks of liquor or material for the manufacture of the same, held therein shall be liable to be attached towards any claim for excise revenue or in respect of any loss incurred by the Government through such default and be sold to satisfy such claim which shall be the first charge upon the proceeds of such sale. (3) Where duty due is not levied or not paid or short-levied or short-paid or erroneously refunded,— (a) the Assistant Commissioner may, within four years from the relevant date, serve notice on the person chargeable with the duty which has not been levied or paid or which has been short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice. Explanation I : Where the service of the notice is stayed by an order of the court, the period of such stay shall be excluded in computing the aforesaid period of four years. Explanation II : For the purposes of this clause "relevant date" means— (i) in the case of intoxicants on which duty has not been levied or paid or has been short-levied or short-paid, the date on which the duty is to be paid under this Act or the rules made thereunder, (ii) in a case where duty is provisionally assessed under this Act or the rules made thereunder, the date of adjustment of duty after the final assessment thereof, (iii) in the case of intoxicants on which duty has been erroneously refunded, the date of such refund; (b) the Assistant Commissioner shall, after considering the representation, if any, made by the person on whom notice is served under clause (a), determine the amount of duty due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined. Notwithstanding anything contained in this Act, the Excise Commissioner may, on the application made in this behalf by a person, with the approval of the Government and after recording his reason for so doing, reduce or waive the amount of any interest payable by him under this Act if he is satisfied that— (a) to do otherwise would cause genuine hardship to the person having regard to the circumstances of the case; and (b) the person has co-operated in any proceeding for the recovery of any amount due from him.