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TMI Blog2013 (7) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 applies by its own force and on its own strength. Reference to Section 28AB in Rule 8 is only for the purpose of rate of interest. The rate of interest payable under Rule 8 was/is the rate of interest fixed by the notification issued under Section 28AB. It is to or for this limited extent, reference is made to the notification issued under Section 28AB - Rule 8 does not incorporate Section 28AB - Rule 8 also does not make the pre-conditions mentioned in Section 28AB part and parcel of the said Rule - Levy of interest for short levy of duty is prescribed by Rule 8 itself - Interest is chargeable because of the provisions of Rule 8 and not because of Section 28AB – petition decided against assessee - Writ Petition (Civil) No. 12012/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsus Wockhardt Hospital And Heart (2000) 200 ELT 15 (Bombay). It is accordingly submitted that liability to pay duty would be under Section 125 of the Act and was not relatable to Section 28AB and, therefore, the petitioner is not liable to pay interest under Section 28AB. Reference was made to Rule 8 of the 1996 Rules and it was submitted that the rule itself was ambiguous and not clear. Section 28AB of the Act would be applicable to specific circumstances and when the pre-conditions therein were not satisfied and, therefore, the rate of interest specified in Section 28AB should not have been applied for computing interest under Rule 8 of 1996 Rules. A separate notification should have been issued under Rule 8. It is submitted that inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondents realised and came to know that the petitioner instead of using imported palm oil for manufacture of soap had diverted it into the local market. Show cause notice dated 24th April, 2007 was issued and it was alleged that the petitioner was liable to pay import duty of Rs.1,27,72,140/- along with interest under Rule 8 read with Section 28AB of the Act. 6. Instead of contesting the show cause notice, the petitioner approached the Settlement Commission under the Act vide settlement application dated 15th May, 2008. 7. By final order dated 24th February, 2009, the Settlement Commission settled the case by directing the petitioner to pay Rs.1,27,72,140/- as representing full and true duty liability with interest payable thereon. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Act. 9. At this stage, we record and note that the petitioner has not challenged validity or vires of Rule 8. It is also not alleged or stated that Rule 8 of the 1996 Rules falls foul and was ultra vires for excessive delegation. No such plea stands raised or arguments addressed. Interpretation of Rule 8 is pressed. 10. Rule 8 of the 1996 Rules reads as under:- 8. Recovery of duty in certain case.- The Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise shall ensure that the goods imported are used by the manufacturer for the intended purpose and in case they are not so used take action to recover the amount equal to the difference between the duty leviable on such goods but for the exemption an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... short levy of duty is prescribed by Rule 8 itself. Interest is chargeable because of the provisions of Rule 8 and not because of Section 28AB. Pre-conditions or the conditions mentioned in Section 28AB do not get incorporated in Rule 8. Rule 8 applies by its own force and on its own strength. Reference to Section 28AB in Rule 8 is only for the purpose of rate of interest. The rate of interest payable under Rule 8 was/is the rate of interest fixed by the notification issued under Section 28AB. It is to or for this limited extent, reference is made to the notification issued under Section 28AB. Clearly, therefore, the petitioner was liable to pay interest under Rule 8 at the rate as was fixed by the applicable notification under Section 28AB ..... X X X X Extracts X X X X X X X X Extracts X X X X
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