9911796707
TMI Blog2001 (5) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... by JDGFT, MDS-14 to the above importer and covered by the list of materials specified under Part C of this Certificate would be eligible for exemption from import duty subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue 159/90-Customs, dated 31-3-1990 . As per the condition of the above said value based advance licence and the DEEC, the applicant was obligated to export the resultant products namely non-alloy steel bars and rods (including Rounds, Flats, Hexagon, Octagon, Wire Rod, Cold twisted deformed bars, Thermo Mechanically treated reinforcing bars, etc.) Angles, Shapes and Sections (including Beem, Joists, Channels, Special profiles, etc.) Plates/Sheets/Strips/Widecoils, Blooms, billets/slabs, Ingots. However, the applicant utilised only 100 MTs out of the 1500 MTs imported, in the export of 81.475 MTs of CTD bars and MS Flats. 3. In view of their failure to fulfil the export obligation in full, the above said SCN has been issued by the Commissioner of Customs demanding duty of Rs. 24,02,431/-, along with interest @ 24% per annum on the entire imported quantity, on the ground that the imported shredd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final hearing. 7. With the above observation, the application was allowed to be proceeded with by order dated 23-10-2000 in terms of Section 127C(1) of the Customs Act, 1962. The request for payment in instalments was also allowed. The applicant was also directed to furnish bank guarantee. 8. Subsequently, as the applicant expressed difficulties in furnishing the Bank Guarantee, their request for keeping a deposit of Rs. 5 lakhs as cash security instead, was allowed in modification of the earlier order by the order dated 16-11-2000 of this Bench. 9. The applicant has since paid the admitted liability in terms of the instalments allowed by the end of April, 2001. The application was, therefore, taken up for final disposal on 8-5-2001. 10. The representative of the applicant confirmed the payment of the admitted liability in full. He further stated that the evidences on usage of 100 MTs of scrap in the export product have also been given to the Revenue. He added that they had been in correspondence with the JDGFT from as long back as on 20-12-1994; but, they were not favoured with any reply. According to him, if they had received a prompt reply, they could have reduced the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 100 MTs of the imported scrap in the export product, and no duty is demandable on this quantity. The mere non-endorsement on DEEC Book of these two exports alone cannot form the basis to deny the exports made. 14. On the other hand, admittedly, the applicant had utilised 1400 MTs in the manufacture of MS Ingots which were cleared locally, as the applicant found it difficult to export due to adverse economic and commercial reasons. The customs duty, including the additional customs duty, on this quantity has since been paid in instalments, in pursuance of the admission order referred to above. The only remaining point for consideration is with reference to the request for waiver of the interest. 15. The SCN does not cite the provisions under which the interest is demanded. As already mentioned above, the DEEC book permitted import of the materials in terms of Customs Notification No. 159/90-Cus., dated 30-3-1990, as amended. A perusal of the 5 Bills of Entry reveals that the Customs Notification No. 83/90, dated 20-3-1990 as amended by 45/93, dated 28-2-1993 and 116/93, dated 4-5-1993 and Notification Nos. 159/90, dated 30-3-1990 and 203/92-Cus., dated 19-5-1992 are mentioned. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Customs Act, 1962. 17. It may be relevant here to refer to the judgment of the Andhra Pradesh High Court in Delta Paper Mills Limited v. Collector of Central Excise, Guntur - 1995 (77) E.L.T. 544 (AP). In the said judgment, the Hon ble Andhra Pradesh High Court has, inter alia, ruled that The payment of interest in case of default in payment of tax is a means of compelling an assessee to pay tax by a prescribed date. Interest is made payable on that amount of tax which ought to have been paid earlier, i.e., within the prescribed time or the specified period and which has not been paid; that interest is made payable because Government to that extent is deprived of the use of money which otherwise it could have got at an early point of time and that on the contrary, provision for payment of interest being a method for collecting or recovering its revenue, it is for the State to decide what is most efficacious for this purpose, and the defaulter has no moral right to make any grievance in this behalf. The provision by which the authority is empowered to levy and collect interest, even if construed as forming part of the machinery provisions, is substantive law for the si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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